Data for question 7.2 b.The audiology department at Randall Clinic offers many services to the clinic's patients.The three most common, along with cost and utilization data, are as follows:

Service Variable Cost per Service Annual Direct Fixed Costs Annual Number of Visits

Basic examination $5 $50,000 3,000

Advanced examination $7 $30,000 1,500

Therapy session $10 $40,000 500

7.2.b. Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above.What is the fee schedule assuming that these overhead costs must be covered?To answer this question, assume that the allocation of overhead costs to each service is made on the basis of the number of visits; Fee schedule assuming allocation of overhead costs ($50,000) to the three services based on number of visits

7.2.b. (1). Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above.What is the fee per visit for the Basic Examination assuming that these overhead costs must be covered?Assume that the allocation of overhead costs to each service is made on the basis of the number of visits.

7.2.b. (2). Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above.What is the fee per visit for the Advanced Examination assuming that these overhead costs must be covered?Assume that the allocation of overhead costs to each service is made on the basis of the number of visits.

7.2.b. (3). Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above.What is the fee per visit for the Therapy Session assuming that these overhead costs must be covered? Assume that the allocation of overhead costs to each service is made on the basis of the number of visits.