Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The attachment contains the questions 1-4 need help to answer and show work In 2015, the Gastroenterology Clinic of Pearland Health System had revenue totaling

The attachment contains the questions 1-4 need help to answer and show work

image text in transcribed In 2015, the Gastroenterology Clinic of Pearland Health System had revenue totaling $14,550,400. The Gastroenterology Clinic costs data for a 12-months period from January 2015 thought December 2015 were reported as follows: Month, 2015 Number of Patient Visits Gastroenterology Clinic Costs, $ January 6,755 945,700 February 6,620 946,660 March 5,834 880,934 April 6,228 927,972 May 7,554 944,250 June 7,620 914,400 July 7,136 949,088 August 7,440 959,760 September 6,453 942,138 October 5,325 825,375 November 5,588 854,964 December 7,020 961,740 Task for this assignment 1. Find the fixed and variable portion of costs using the high-low method. 2. Calculate the contribution margin, the contribution margin ratio, and the per-visit revenue, costs, and operating income. 3. Discuss the importance of computation of the contribution margin in evaluating the relationship of cost, volume, and profit. 4. In deciding to continue (or to discontinue) a service, which revenues currently do not cover total cost, which is more important in the short run, variable cost or fixed cost? In the long run (with more service volume)? Why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stats Data And Models

Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock

4th Edition

321986490, 978-0321989970, 032198997X, 978-0321986498

Students also viewed these Accounting questions

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago