please answer question 13-40

required 1,2,3

offer (Adapted from a problem by Joseph San Miguel) LO 13-11 13.40 Target Costing: Health Care VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment and subscribers. The per member, per month rate (PMPM) is determined by estimating the health care ing to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from cost per enrollee within a geographic location. The average health care coverage in North Carolina cents 5368 per month, which is the same amount irrespective of the subscriber's age. Because viduals are demanding qunlity care at reasonable rates, VIP-MD must contain its costs to remain the current year with a monthly premium of $325. VIP-MD wants to maintain its current marka competitive. A major competitor, National Physicians.entered the North Carolina market early in penetration and hopes to increase the number of its rollees in the current year. The latest data on the number of enrollees and the associated costs follow: Enrollment in Current Year Projected Enrollment Next Year Average Monthly Cost in Current Year Age 1-4 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85 years and older 45,688 82.456 95,873 66.246 133,496 166,876 85,496 99,624 156.288 67.895 23,499 1.023,437 48.977 84,663 95,887 67,882 132.554 175,446 90.889 101.923 161,559 72,465 26,849 1,059,094 $ 11,147,872 10,059,632 8,436,824 9,539,424 26,432,208 38,882,108 22,741,936 28,691,712 49,518,144 33,432,760 24,286,475 $263,169,095 Required 1. Calculate the target cost required for VIP-MD to maintain its current market share and profit per enrollee in the current year 2. Costs in the health care industry applicable to VIP-MD and National Physicians 1. Idemity the critical success factors for VIP-MD. How can the HMO maintain its market share? by 7% in the coming year. VIP-MD is planning for the year ahead and is expecting all providers, include are expected to increase costuming again that VIP-MD wants to maintain the same profil per enrollee as in the current year ILO 13-11 13:41 Target Cost: Warehousing Caldwell Supply, a wholesaler, has determined that its operation have three primary activities: purchasing. Warehousing, and distributing. The firm reports the following operating data for the year just completed: Activity Cost Driver Purchasing Number of purchase orders Warehousing Number of moves Distributing Quantity of Cost Driver Cost per Unit of Cost Driver 10 Nuum