i need help whth question 8
Exhibit 1: Bridgestone Behavioral Health and Addiction Center Next Year's Annual Budget Assessment Urinalysis Case Group Management Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatic Methadone Ambul Maint Detox Total Revenge Medicaid Rate Units of Service Revenue State Private Pay Total $ 10 4.000 $ 160.000 $ 11,550 $ 1.156.000 6.000 $ 480,000 28,000 $ 840,000 12.000 $1,000,000 $ 10 $ 110 $ 200 $ 15 S 250 1,500 2.000 800 8.000 1,300 $ 210,000 $220.000 $ 160.000 $120,000 $338,000 $4,783,000 3.000 205,000 208.000 3.500 28.000 $ 210,000 $ 226,500 $ 160,000 $120,000 $543.000 55.000.000 10,000 S 110.000 500 $1.156,500 5,000 $ 845,000 10,000 $100,000 $ 480,000 Variable Costs Medications/Tests Other Total $ 30.000 7.900 $ 32,500 $ 404,250 2,000 S. 405,250 $10,000 5 10,000 $ 140,000 $ 120,000 2000 2.000 $ 142,000 5 122,000 $ 30,000 $ 200.000 200.000 $ 96,000 $260.000 1480.750 1,000 250 19.750 $ 31,000 $200,250 $200,000 $2,000 $200,000 $1.500.000 $ 137,500 $ 70,250 $ 470,000 $ 700,000 $ 60,000 $ 170,000 $ 1.250 140,000 $ 24,000 $200,000 $3.500.000 Contribution Margin Fixed Expenses Salaries & Benefits Consulting for Rent Transportation Office supplies Depreciation Other Total Fixed Expense 1,827,607 174,685 419.244 14,811 09.074 524.055 $3,493.700 5. Fised costs can be discretionary or committed. Using yout jedement based on the discussion in the case. ilentify which costs are likely to be discretionary Various services that could be offered include: Support management in addressing issues of productivity and alssenteeism that may be caused by mental health or substance abuse problems Support effective supervisory practices Assist employees with deteriotating performance relating to chavit or other health problems Address work-related issues intluencing disability of return to work Assist in the identification of stressrelated problems that may be a result of work organization Assist the organization in its response to drug-free workplace policies and regulations and disaster and terrorism preparedness as it relates to paychenecial issues Serve as an internal consultant to management regarding issues of employee behavioral health. 6. As Bridgestone operates during the next year do some services deserve more attention than other (Hint: What is their relative contribution to the WACMS and to the total contributia matgin? Which services & lfsbudgetary weighted werage contribution margin (WACM) percentage has been descloped with an peted level of revenue and a penned fixed cost and the budgetary WACM percentage is in fact achieved in the next(future) time period. could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increme beyond the budgeted levels? Can you explain how lees still might occur cien though the planned ACM pererategis being scalized in the future time period? . Can you demonstrate financial losses might occut? Describe the effects of the following the possibile scenarios 2. What is the financial impact if Bridgestone's group counseling unit of service colme decreases tuy 100% during the first quarter ISSUES FOR DISCUSSION 1. What is the weighted average contribution margin(WACM) percentage for Bridgestone's next annual budget? 2. What does a high weighted average contribution margin (WACN) percentage mean for the management of Bridgestone What is the financial impact if Bridgestone fixed.com increase by 1 during the first quartet 8. If a budgetary weighted average contribution margin (WACM) percentage has been developed with an expected level of revenue and a planned fixed cost and the budgetary WACM percentage is in fact achieved in the next (future) time period, could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increase beyond the budgeted levels? Can you explain how losses still might occur even though the planned WACM percentage is being realized in the future time period? Next Years Annual Budget Assessment Urinalysis Case Management Group Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatic Methadone Ambul Maint Detox Total $ 100 11,550 $1.156,000 1.500 Revenue Medicaid Rate Units of Service Revenue State Private Pay Total 2.000 4,000 $ 100.000 30$ 28,000 12.000 $ 340,000 $1,000,000 3.000 6.000 $ 480.000 140$ 110 $ 200 $ 15 $250 300 1.300 $ 210,000 $220,000 $160.000 $120.000 $338.000 $4.763.000 3.000 205.000 200,000 3.500 29.000 $ 210.000 $ 226500 $ 160,000 $ 120.000 $543.000 $5.000.000 10.000 $ 170,000 500 $1.156,500 5.000 $ 845,000 10.000 $1.090.000 $ 480,000 Variable Costs Medictions/Tests Other Total $ 30.000 2.500 $ 32,500 $ 404,250 2,000 S 405.250 5 10.000 S 10.000 $ 140,000 2.000 $112.000 $ 120.000 2.000 $ 122,000 $ 30,000 1000 S 31.000 $ 200.000 $ 200.000 250 $ 200.250 S 200.000 $ 96,000 $200,000 1,480,250 19.750 $ 96,000 $260.000 $ 1.500.000 $ 137 900 $ 79,250 $ 470.000 $ 700,000 $ 60,000 $ 179,000 $26.250 $140,000 $ 24,000 $250.000 $3.500.000 Contribution Margie Fixed Expenses Salaries & Benefits Consulting Fees Rent Transportation Office Supplies Depreciation Other Total Fixed Expose 1.827.607 17465 419.24 104,811 89,074 373,424 524,055 33,433,700 Quarter 1 Next Year's Budget Urinalysis Case Group Management Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatie Assessment Methadone Ambul Maint Detox Total Revenue Medicaid Rate Units of Service Revenge State Private Pay Total $ 40 1,000 $ 40,000 $ 100 2888 $288.750 $ 30 1.500 $120.000 $ 7.000 $210.000 $ 90 3,000 $ 270,000 $ 140 375 $ 52.500 $ 110 $ 200 500 200 $55.000 $ 40.000 750 $ 15$ 200 2,000 325 $30,000 $ 34,500 $ 1.190,750 51,250 52,000 7,250 $30,000 $135,750 $1,250,000 875 2,500 $ 42,500 125 $288.305 1.250 $211,250 2,500 $ 272,500 $120,000 $ 52,500 $56,625 $ 40,000 Variable Costs Medications Tests Other Total $ 7,500 525 $ 8.125 $ 101,063 500 $ 101.563 $ 2.500 $ 2.500 $ 35.000 500 $ 35.500 $ 30,000 500 $ 30,500 $ 7.500 250 $ 7.750 $50,000 $50.000 63 $50,063 $50,000 $ 24.000 $ 65,000 $ 370,063 4,938 $ 24,000 $ 55,000 375,000 $ 34,375 $187.313 $117.500 $175,750 $ 22,000 $ 46.750 $ 6,563 $(10,000 $ 6,000$ 70,790 $ 875,000 Contribution Margin Fixed Expenses Salaries & Benefits Consulting Fees Rent Transportation Office Supplies Depreciation Other Total Fixed Expense 456,901 43,671 104,811 25,200 17,469 93,356 131,014 $ 873,425 Exhibit 1: Bridgestone Behavioral Health and Addiction Center Next Year's Annual Budget Assessment Urinalysis Case Group Management Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatic Methadone Ambul Maint Detox Total Revenge Medicaid Rate Units of Service Revenue State Private Pay Total $ 10 4.000 $ 160.000 $ 11,550 $ 1.156.000 6.000 $ 480,000 28,000 $ 840,000 12.000 $1,000,000 $ 10 $ 110 $ 200 $ 15 S 250 1,500 2.000 800 8.000 1,300 $ 210,000 $220.000 $ 160.000 $120,000 $338,000 $4,783,000 3.000 205,000 208.000 3.500 28.000 $ 210,000 $ 226,500 $ 160,000 $120,000 $543.000 55.000.000 10,000 S 110.000 500 $1.156,500 5,000 $ 845,000 10,000 $100,000 $ 480,000 Variable Costs Medications/Tests Other Total $ 30.000 7.900 $ 32,500 $ 404,250 2,000 S. 405,250 $10,000 5 10,000 $ 140,000 $ 120,000 2000 2.000 $ 142,000 5 122,000 $ 30,000 $ 200.000 200.000 $ 96,000 $260.000 1480.750 1,000 250 19.750 $ 31,000 $200,250 $200,000 $2,000 $200,000 $1.500.000 $ 137,500 $ 70,250 $ 470,000 $ 700,000 $ 60,000 $ 170,000 $ 1.250 140,000 $ 24,000 $200,000 $3.500.000 Contribution Margin Fixed Expenses Salaries & Benefits Consulting for Rent Transportation Office supplies Depreciation Other Total Fixed Expense 1,827,607 174,685 419.244 14,811 09.074 524.055 $3,493.700 5. Fised costs can be discretionary or committed. Using yout jedement based on the discussion in the case. ilentify which costs are likely to be discretionary Various services that could be offered include: Support management in addressing issues of productivity and alssenteeism that may be caused by mental health or substance abuse problems Support effective supervisory practices Assist employees with deteriotating performance relating to chavit or other health problems Address work-related issues intluencing disability of return to work Assist in the identification of stressrelated problems that may be a result of work organization Assist the organization in its response to drug-free workplace policies and regulations and disaster and terrorism preparedness as it relates to paychenecial issues Serve as an internal consultant to management regarding issues of employee behavioral health. 6. As Bridgestone operates during the next year do some services deserve more attention than other (Hint: What is their relative contribution to the WACMS and to the total contributia matgin? Which services & lfsbudgetary weighted werage contribution margin (WACM) percentage has been descloped with an peted level of revenue and a penned fixed cost and the budgetary WACM percentage is in fact achieved in the next(future) time period. could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increme beyond the budgeted levels? Can you explain how lees still might occur cien though the planned ACM pererategis being scalized in the future time period? . Can you demonstrate financial losses might occut? Describe the effects of the following the possibile scenarios 2. What is the financial impact if Bridgestone's group counseling unit of service colme decreases tuy 100% during the first quarter ISSUES FOR DISCUSSION 1. What is the weighted average contribution margin(WACM) percentage for Bridgestone's next annual budget? 2. What does a high weighted average contribution margin (WACN) percentage mean for the management of Bridgestone What is the financial impact if Bridgestone fixed.com increase by 1 during the first quartet 8. If a budgetary weighted average contribution margin (WACM) percentage has been developed with an expected level of revenue and a planned fixed cost and the budgetary WACM percentage is in fact achieved in the next (future) time period, could the organization still face losses if the total revenue drops below the budgeted level or total fixed costs increase beyond the budgeted levels? Can you explain how losses still might occur even though the planned WACM percentage is being realized in the future time period? Next Years Annual Budget Assessment Urinalysis Case Management Group Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatic Methadone Ambul Maint Detox Total $ 100 11,550 $1.156,000 1.500 Revenue Medicaid Rate Units of Service Revenue State Private Pay Total 2.000 4,000 $ 100.000 30$ 28,000 12.000 $ 340,000 $1,000,000 3.000 6.000 $ 480.000 140$ 110 $ 200 $ 15 $250 300 1.300 $ 210,000 $220,000 $160.000 $120.000 $338.000 $4.763.000 3.000 205.000 200,000 3.500 29.000 $ 210.000 $ 226500 $ 160,000 $ 120.000 $543.000 $5.000.000 10.000 $ 170,000 500 $1.156,500 5.000 $ 845,000 10.000 $1.090.000 $ 480,000 Variable Costs Medictions/Tests Other Total $ 30.000 2.500 $ 32,500 $ 404,250 2,000 S 405.250 5 10.000 S 10.000 $ 140,000 2.000 $112.000 $ 120.000 2.000 $ 122,000 $ 30,000 1000 S 31.000 $ 200.000 $ 200.000 250 $ 200.250 S 200.000 $ 96,000 $200,000 1,480,250 19.750 $ 96,000 $260.000 $ 1.500.000 $ 137 900 $ 79,250 $ 470.000 $ 700,000 $ 60,000 $ 179,000 $26.250 $140,000 $ 24,000 $250.000 $3.500.000 Contribution Margie Fixed Expenses Salaries & Benefits Consulting Fees Rent Transportation Office Supplies Depreciation Other Total Fixed Expose 1.827.607 17465 419.24 104,811 89,074 373,424 524,055 33,433,700 Quarter 1 Next Year's Budget Urinalysis Case Group Management Counseling Individual Crisis Intensive Counseling Intervention Outpatient Medical Somatie Assessment Methadone Ambul Maint Detox Total Revenue Medicaid Rate Units of Service Revenge State Private Pay Total $ 40 1,000 $ 40,000 $ 100 2888 $288.750 $ 30 1.500 $120.000 $ 7.000 $210.000 $ 90 3,000 $ 270,000 $ 140 375 $ 52.500 $ 110 $ 200 500 200 $55.000 $ 40.000 750 $ 15$ 200 2,000 325 $30,000 $ 34,500 $ 1.190,750 51,250 52,000 7,250 $30,000 $135,750 $1,250,000 875 2,500 $ 42,500 125 $288.305 1.250 $211,250 2,500 $ 272,500 $120,000 $ 52,500 $56,625 $ 40,000 Variable Costs Medications Tests Other Total $ 7,500 525 $ 8.125 $ 101,063 500 $ 101.563 $ 2.500 $ 2.500 $ 35.000 500 $ 35.500 $ 30,000 500 $ 30,500 $ 7.500 250 $ 7.750 $50,000 $50.000 63 $50,063 $50,000 $ 24.000 $ 65,000 $ 370,063 4,938 $ 24,000 $ 55,000 375,000 $ 34,375 $187.313 $117.500 $175,750 $ 22,000 $ 46.750 $ 6,563 $(10,000 $ 6,000$ 70,790 $ 875,000 Contribution Margin Fixed Expenses Salaries & Benefits Consulting Fees Rent Transportation Office Supplies Depreciation Other Total Fixed Expense 456,901 43,671 104,811 25,200 17,469 93,356 131,014 $ 873,425
