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Please assist in the case study below and the question and excel sheet File Home X Cut Insert Draw Arial Formulas Page Layout v 10

Please assist in the case study below and the question and excel sheet

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File Home X Cut Insert Draw Arial Formulas Page Layout v 10 Font Review View Data ab ce Wrap Text Help Cbcopy v Paste Format Painter Clipboard B12 7 Instructions: Merge & Center v Alignment General o Number For Upon completing the Cambridge Transplant Center Case Study found in the Pink and Song text, answer the following questions. Responses should be in Times New Roman, 12 point font, and answered using the text wrap feature in the same cell as the question. Remember to use the spreadsheet labeled "Model" on the bottom left tab to assist with your calculations. When you have completed the homework, return to the Assignments section of Module 7 to upload your work as a single Excel spreadsheet. The file should be named using the First initial of your first name_Your last 8 name_Module 7 Homework (i.e. J_Smith_Module 7 Homework). 9 10 Questions: l. WIIat is the estimate of the marginal cost of Phase 4 hospital services (assuming 60 percent of the costs are fixed and 40 percent are variable)? 11 2. WIIat is the underlying cost structure or cost behavior of this service? NvV11at is the relevant range for this structure? Does the structure change if the contract is expected to bring in more than 30 additional transplant patients? 12 3. WIIat fixed-cost proportion is required to force the average variable cost for Phase 4 hospital services to $90,000? 13 4. Assume the fixed cost proportion is only 50 percent. Nvivmat price must be set to cover variable costs? WIIat if the fixed cost proportion is 70 percent? 14 5. WIIat role do current reimbursement amounts paid for transplants play in the decision to use marginal cost pricing? Nvivmat about excess capacity? 15 6. WIIat is your recommendation for the base rate for Phase 4 services that should be contracted? Make sure to consider long-term pricing strategies as well as the effect on those who are currently paying about $140,000 for the services. 16 7. How should outliers be detennined/defined for the contract? Nvivmat payment should be sought for outliers? 17 18

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