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Questions 3-4 (of 4)x The following information applies to the questions displayed below] We Care is an outpatient surgical clinic that was profitable for many
Questions 3-4 (of 4)x The following information applies to the questions displayed below] We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three cost centers and their cost drivers follow. Cost Center Cost S 1,400,000 Professional hours Cost Driver Driver Professional salaries Patient services and supplies Building cost 26,000 Number of patients 48,000 Square feet 10,000 600 1,500 The two main surgical units and their related data follow Hours Square Feet Patients 2,400 Service 200 400 500 General surgery Orthopedic surgery 7600 1,000 Orthopedic surgery requires more space for patients, supplies, and equipment. ???????? A?1ttiamo Rf2S Rial ?? ????? acca?? ? p
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