The Audiology department at Randall Clinic offers many services to the clinic patients. The three most common, along with cost and utilization data, are as follows:

Service Variable Cost per Service Annual Direct Fixed Costs Annual Number of Visits

Basic exam $5 $50,000 $3,000

Advanced exam $7 $30,000 $1,500

Therapy Session $10 $40,000 $500

A). what is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed costs?

B). Assume that the audiology department is allocated $100,000 in total overhead by the clinic and the department director has allocated $50,000 of this amount to the three services listed above. What is the fee schedule assuming that these overhead costs must be covered? (To answer this question, assume that the allocation of overhead costs to each service is made on the basis of number of visits).

C). Assuming that these services must make a combined profit of $25,000. Now what is the fee scheduled. (To answer this question, assume that profit requirement is allocated in the same way overhead costs.