Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications, 5th Edition

isbn 978-1-119-55384-7 (2020 version textbook)

Please help me with: Question 21 from Chapter 10

PLEASE SHOW YOUR WORK

APPENDIX I: AN EXTENDED EXAMPLE OF HOW TO DEVELOP A BUDGET 513 EXHIBIT 1.4e DATA USED TO CONSTRUCT ZMG HOSPITALIST PRACTICE'S FIXED LABOR SALARIES AND BENEFITS Number of FTES Average Salary Base Salary Benefit Percent Date of Next Raise Percent Raise 12 $2,400,000 15% 5% Feb-02 Jul-02 8 15% 20% 1 $200,000 $220,000 $100,000 $100,000 $100,000 Physician! Physician 11 Physician Assistant Nurse Practitioner Administrative Director Office Staff Office Staff 11 $1,760,000 $100,000 $100,000 $100,000 1 5% 5% 5% 5% Nov-02 Nov-02 Feb-02 20% 20% 1 Feb-02 5% $50,000 $30,000 $50,000 $90,000 25% 25% 3 5% Jun-02 *All salaries and wages are paid twice monthly in equal amounts. The 2nd payment is made on the last day of each month. 21. Labor budget: calculating the fixed labor budget. Instead of the raises stated in Exhibit 1.4e, assume that all benefits are 22 percent and all raises are 5 percent, and calculate the fixed labor budget for January, February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not