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If Mr. Soriano wants to make sure each center at least covers its own costs, what is the correct decision based on the information available
If Mr. Soriano wants to make sure each center at least covers its own costs, what is the correct decision based on the information available from the table?
Group of answer choices
Close Center 1
Close Center 2
Close both Centers 1 and 2
Continue operating at all imaging centers
Carlos Soriano owns three therapy centers. Using information from the previous month (which he believes to be indicative of an average month), Mr. Soriano constructed the following table in order to examine their financial performance. Payor #1 #2 #3 Reimbursement / Visit Private Insurance 20 80 50 $300 Medicare 15 30 30 $175 Medicaid 75 40 35 $110 Total Monthly Volume (110 150 115 Variable Cost / MRI ($35) ($40) ($50) Avoidable Fixed Cost ($15,000) ($18,000) ($16,000) Overhead Costs |($15,000) |($16,000) |($10,000)Step by Step Solution
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