Question
Dental Diversity provides three basic service appointments; Cleaning, Check-up, and Full service. Total annual costs average $7,200,000. An RVU analysis indicates the following: Annual Average
Dental Diversity provides three basic service appointments; Cleaning, Check-up, and Full service. Total annual costs average $7,200,000. An RVU analysis indicates the following:
| Annual Average Appointments | RVUs/appointment | ANNUAL RVUs | |
|---|---|---|---|
| Cleaning | 12,000 | 4 | |
| Check-ups | 12,000 | 6 | |
| Full Service | 4,000 | 10 | |
| Total |
A. Using RVU methodology, what is the cost for each type of appointment?
B. If the goal is a 33.33% profit margin, what should be the price for each type of appointment?
Step by Step Solution
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Step: 1
A To determine the cost for each type of appointment using the RVU methodology we need to allocate t...
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
