Table 1 includes PCS's proposed budget for 2018. Using this as a basis, develop a revenue and expenses budget for each PCS center. Note that professional reading fees and laboratory expenses are variable costs that need to be allocated based on the type of visit. Generally, an occupational health visit (Categories 8 and 9 on Tables 2 and 3) including all physicals has reading and laboratory costs 1.4 times what a general medical visit incurs (Category 1, 2, or 3). For each line item in the budget, indicate whether the item is a fixed or variable expense and the basis of allocation or assignment for the budget for each center. Each center is expected to generate approximately the same profit margin. Given your analysis, will it? Should management change its expectations regarding average revenue per visit by center?

Q Search the web... f a D AutoSave O Off Copy_of_Case_Study_Tables (2) - Excel Search A Brent Reed BR X File Home Insert Page Layout Formulas Data Review View Help Share Comments Times New Roman ~ 10 ~ A" A ab Wrap Text General Insert Ex AY O Paste BIU- 3EE EE Merge & Center $ ~ % " Conditional Format as Cell Delete Table Styles Format Sort & Find & Ideas Sensitivity Formatting Filter ~ Select Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity i SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as breed41@liberty.edu so we can verify your subscription. Sign In X A7 X V Patient Revenue A B D E F G H J K L M N O P 1 Proposed Operational Budget for 2018 W N Patient Revenue 2,424,000 Deductions 198, 768 Net revenue 2,225,232 5 Expenses Salaries and wages 1,181,200 Staff benefits 25.230 Administrative expenses 21,500 9 Advertising 3.000 10 Collection fees 1.800 11 Consultants 3,750 12 Computer support 34.00 13 Equipment leases 4.100 14 Insurance 28.100 15 Laboratory 49.000 16 Laundry and housekeeping 13.500 17 Legal audit .450 Table 1 Table 2 Table 3 Table 4 + + 100% X 12:19 AM Type here to search O 5/3/2020Q Search the web... f a D AutoSave O Off Copy_of_Case_Study_Tables (2) - Excel Search A Brent Reed BR X File Home Insert Page Layout Formulas Data Review View Help Share Comments Times New Roman ~ 10 ~ A" A ab Wrap Text General Insert Delete Ex AY O Paste BIU- 3EE EE Merge & Center $ ~ % " Conditional Format as Cell Sort & Find & Ideas Sensitivity Formatting Table Styles Format Filter ~ Select Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity i SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as breed41@liberty.edu so we can verify your subscription. Sign In X A2 X V fx Patient Revenue A B D E F G H J K L M N O P 17 Legal audit 3.450 18 Medical supplies 54.750 19 Printing and postage 11,000 20 Professional fees 28.00 21 Ren 78.500 22 Repairs 3,500 23 Telephone 11,000 24 Utilities 19,20 25 Depreciation 73.000 26 Bad debt expenses 10.400 27 Total expenses 2,072,980 28 29 Income (loss) before taxes 152,252 30 Taxes 0.901 31 Income (loss) after taxes 91,351 32 33 NOTE: Table 1 Table 2 Table 3 Table 4 (+ + 100% 12:19 AM Type here to search O X 5/3/2020Q Search the web... f a D AutoSave O Off Copy_of_Case_Study_Tables (2) - Excel Search A Brent Reed BR X File Home Insert Page Layout Formulas Data Review View Help Share Comments Times New Roman ~ 10 ~ A" A ab Wrap Text General Insert Delete Ex AY O Paste BIU- 3EE EE Merge & Center * $ ~ % " Conditional Format as Cell Format Sort & Find & Ideas Sensitivity Formatting Table Styles Filter ~ Select Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity i SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as breed41@liberty.edu so we can verify your subscription. Sign In X A2 X Patient Revenue A B D E F G H J K L M N O P 29 Income (loss) before taxes 152,252 30 Taxes 0.901 31 Income (loss) after taxes 91,351 32 33 NOTE: 34 Budget parameters Alph Beta Total 35 Visits, budgeted 7,500 5.100 12,600 Average revenue per visit ()) with 36 no increased basic visit fee 160 240 37 38 39 40 41 42 43 44 45 Table 1 Table 2 Table 3 Table 4 (+ + 100% Type here to search X 12:19 AM O 5/3/2020