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Only full answers please. If you are unsure, do not attempt. QUESTION 2 Not yet answered Points out of 30.00 P Flag question Make or
Only full answers please. If you are unsure, do not attempt.
QUESTION 2 Not yet answered Points out of 30.00 P Flag question Make or Buy Priya RahayM.D.is a general practitioner whose offices are located in the Lake Forest Professional Building. In the past, Dr. Rahay has operated her practice with a nurse, a receptionist/secretary, and a part-time bookkeeperDr. Rahavy, like many smalltown physicians, has billed her patients and their | insurance companies from her own office. The parttime bookkeeper, who works 15 hours per week, is employed exclusively for this purpose North Avenue Physicians Service Center has offered to take over all of Dr. Rahavy's billings and collections for an annual fee of $24,000. If DrRahavy accepts this offer, she will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $20 per hourand the bookkeeper works 50 weeks per yearWith all the billings and collections done elsewhere, Dr. Rahavy will have three additional hours available per week to see patients. She sees an average of four patients per hour at an average fee of $30 per visit, Dr. Rahavy's practice is expandingand new patients often have to wait several weeks for an appointmentShe has resisted expanding her office hours or working more than 50 weeks per year. Finally, if DrRahavy signs on with the centershe will no longer need to rent a records storage facility for $200 per month. Conduct a relevant cost analysis to determine if it is profitable to outsource the bookkeeping. Calculate the net advantage (disadvantage of outsourcing the bookkeeping. Use a negative sign with your answer to indicate a net disadvantage, if applicableStep by Step Solution
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