Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with Question 18 (a, b, c) Please solve & show all work (18 Add-or-drop decision. The Midtown Women's Center offers bone densitometry scans
Please help with Question 18 (a, b, c)
Please solve & show all work
(18 Add-or-drop decision. The Midtown Women's Center offers bone densitometry scans in the office as a convenience to its patients. The clinic volume is expanding, and Sam Loch, the cent- er's administrator, is considering dropping the bone densitometry service and converting the space to an exam room to allow for more outpatient visits. The following information has been gathered to help with the decision: Number of scans per year Reimbursement per bone densitometry scan Bone densitometry supply cost per scan Part-time bone densitometry scan technician Reimbursement per office visit Supply cost per office visit Expected increase in outpatient volume if additional exam space is available 610 $87 $32 $29,000 $100 $35 600 a. b. What is the contribution margin for the bone densitometry service per year? Should this service continue as opposed to converting it to exam room space? Why or why not? C. How many office visits would it take to replace the income from the bone densitometry service
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started