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PLEASE HELP For billing purposes, assume Phoenix Family Medical Clinic classifies its services into one of four major procedures, X1 through X4. A local business

PLEASE HELP

For billing purposes, assume Phoenix Family Medical Clinic classifies its services into one of four major procedures, X1 through X4. A local business has proposed that Phoenix provide health services to its employees and their families at the following set rates per procedure:

X1 $100
X2 200
X3 60
X4 300

Because these rates are significantly below the current rates charged for these services, management has asked for detailed cost information on each procedure. The following information is available for the most recent 12 months.

Number of Procedures
Month Total Cost X1 X2 X3 X4
1 $17,250 30 25 155 19
2 18,750 38 30 135 23
3 20,250 50 20 105 38
4 14,250 20 25 90 25
5 15,000 68 15 120 20
6 20,250 90 19 158 14
7 19,125 20 30 143 28
8 16,125 16 30 132 20
9 19,500 60 21 93 35
10 16,500 20 22 75 35
11 17,100 20 18 113 33
12 19,875 72 15 150 30

Required

Evaluate the rates proposed by the local business. Assuming Phoenix has excess capacity and no employees of the local business currently patronize the clinic, what are your recommendations regarding the proposal?

Use negative signs with answers only to indicate a loss. Otherwise do not use negative signs with your answers.

Comparison of Proposed Rates and Estimated Variable Costs
Procedure X1 X2 X3 X4
Proposed rate

Estimated cost

Profit (loss)

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