Outpatient Surgery is developing an RVU and product cost for the following surgical procedures, given the projected volumes and sample direct costs.Projected total costs for the Outpatient Surgery department are $20 million ($12 million in direct costs and $8 million in indirect costs).Use the steps provided in your textbook toCalculate the cost per procedure using job-order costing.

ProcedureProjected VolumesLabor ExpenseSupply ExpenseSubcutaneous Tissue Debridement2,000$100$90Esophagastroduodeno with Biopsy4,000$150$60Aspiration/Injection of a Joint

8,000$75$30Colonoscopy10,400$110$20

Stage 1:Calculate the RVU for each procedure (Show your work):

Stage 2:Calculate the total cost for each procedure (Show your work):

Next, Outpatient Surgery wants to add a cost driver to better represent the causal relationship of their indirect costs to produce a more accurate cost-per-procedure. Using the steps in your textbook assign costs to each procedure using the following information.

ProcedureEquipment Use (min.)Subcutaneous Tissue Debridement10Esophagastroduodeno with Biopsy30Aspiration/Injection of a Joint5Colonoscopy15

Stage 1:Calculate the direct RVU and the cost driver for each procedure (Show your work):

Stage 2:Calculate the total cost for each procedure (Show your work):

Lastly, Outpatient Surgery is considering adding a new cataract surgery procedure with a fixed cost of $200,000, a charge of $130 per procedure, and a variable cost of $90.

What is the breakeven point in quantity and in dollars? (Show your work):

What is the contribution margin in dollars and in a percentage? (Show your work):