Pesource Usage, Spedar Ordes St. John's Medical Center (5)MC) has five medical technicians who are responsible for conducting cardiac catheterization testing in 5 M ML Cath Lab. Each technician is paid a salary of $36,000 and is capable of conducting 1,000 procedures per year, The cardiac catheterization equipanent is one year old and was purchased for $250,000. It is expected to last five years. The equipenent's capacity is 25,000 procedures over its life. Depreciation is computed on a straight-fine basis, with no salvege yalue erpected. The reading of the catheterization results is conducted by an outside physician whose: fee is $120 per test. The technician's report with the outside physician's note of restils is sent to the referring pliysician. In addition to the salaries and equipment, 5 ) MC spends $50,000 for supphes and other costs needed to operate the equipment (asruming 5,000 procedures are conducted). When. SJMC purchased the equipment, it fully expected to perform 5,000 procedures per year. In fact, during its first year of operation, 5,000 procedures were run. Howevec, a larger hospital has establithed a clinic in the city and will siphon ofl some of SJMCic business. During the coming years, SaMC expects to. run only 4,200 cath procedures yearly. 5JMC has been chatping $850 for the procedure-enough to cower the direct costs of the procedure plus an assignment of general overtread (e-9., depreciation on the hospital bullding, lighting and heating, and janitorial services). At the beginning of the second year, an HMO from a neighboting community approached 5aMC and offered to send its dients to SJMC for cardiac Catheterization provided that the charge per procedure would be 3550 . The 1HM estimates that le can provide about 500 patients per year. The HMO has. indicated that the amanoement is temporary-for one year only. The HMO expects to harve its own tosting capabilities within one year. Reduireds 1. Which of the resources associated with the cardiac catheterizabion activity can be dassified as committed resources? Which of the resources assodated with the cardiac catheterization activity can be dassified as flexible reseurces? Supplies and olther costs, Outside physician reading of mosults Cardiac catheterization equipment and technicans Which of the resources assodated with the cardiac catheterization adivity can be dassified as flexible resources? 2. Calculate the activity rate for the cardiac catheterization activity. Break the activity rate into fixed and variable components. Which of the activity resources are relevant with respect to the following alternatives: (1) accept the HMO offer, or (2) reject the HMO offer? 3. Assume that SJMC will accept the HMO offer if it reduces the hospitar's operating costs, Should the HMO offer be accepted? 4. Assumino that SMMC wants to bring in the same revenues earned in the cardiac catheterization activity's first year less the reduction in resource spending attributable to using only four technicians, how much must sMMC charge for a procedure? If rounding is required, round your answer to the nearest dollar. x per procedure