1. Develop a revenue and expenses budget for both\"Alpha\" and \"Beta\" PCS cent
ID: 2729856 • Letter: 1
Question
1. Develop a revenue and expenses budget for both"Alpha" and "Beta" PCS centers.
Proposed Operational Budget for 2015 ($)
Budget Parameters
Patient Revenue: 2,424,000 Deductions 198,768 Net Revenue 2,225,232 Expenses: Salaries and Wages 1,181,200 Staff benefits 425,230 Administrative expenses 21,500 Advertising 3,000 Collection fees 1,800 Consultants 3,750 Computer support 34,000 Equipment leases 4,100 Insurance 28,100 Laboratory 49,000 Laundry/ and housekeeping 13,500 Legal/ Audit 8,450 Medical Supplies 64,750 Printing and postage 11,000 Profesional Fees 28,000 Rent 78,500 Repairs 3,500 Telephone 11,000 Utilities 19,200 Depreciation 73,000 Bad Debt Expenses 10,400 Total Expenses: 2,072,980Explanation / Answer
Total Allocation Base Alpha Beta factor Patient Revenue: $2,424,000.00 Revenue per visit $ 1,200,000.00 $ 1,224,000.00 Deductions $ 198,768.00 Revenue per visit $ 79,507.20 $ 119,260.80 Net Revenue $2,225,232.00 Revenue per visit $ 1,120,492.80 $ 1,104,739.20 Expenses: Salaries and Wages $1,181,200.00 Visits $ 703,095.24 $ 478,104.76 93.746032 Staff benefits $ 425,230.00 Visits $ 253,113.10 $ 172,116.90 33.748413 Administrative expenses $ 21,500.00 Visits $ 12,797.62 $ 8,702.38 1.7063492 Advertising $ 3,000.00 Visits $ 1,785.71 $ 1,214.29 0.2380952 Collection fees $ 1,800.00 Visits $ 1,071.43 $ 728.57 0.1428571 Consultants $ 3,750.00 Visits $ 2,232.14 $ 1,517.86 0.297619 Computer support $ 34,000.00 Visits $ 20,238.10 $ 13,761.90 2.6984127 Equipment leases $ 4,100.00 Visits $ 2,440.48 $ 1,659.52 0.3253968 Insurance $ 28,100.00 Visits $ 16,726.19 $ 11,373.81 2.2301587 Laboratory $ 49,000.00 Visits $ 29,166.67 $ 19,833.33 3.8888889 Laundry/ and housekeeping $ 13,500.00 Visits $ 8,035.71 $ 5,464.29 1.0714286 Legal/ Audit $ 8,450.00 Visits $ 5,029.76 $ 3,420.24 0.6706349 Medical Supplies $ 64,750.00 Visits $ 38,541.67 $ 26,208.33 5.1388889 Printing and postage $ 11,000.00 Visits $ 6,547.62 $ 4,452.38 0.8730159 Profesional Fees $ 28,000.00 Visits $ 16,666.67 $ 11,333.33 2.2222222 Rent $ 78,500.00 Visits $ 46,726.19 $ 31,773.81 6.2301587 Repairs $ 3,500.00 Visits $ 2,083.33 $ 1,416.67 0.2777778 Telephone $ 11,000.00 Visits $ 6,547.62 $ 4,452.38 0.8730159 Utilities $ 19,200.00 Visits $ 11,428.57 $ 7,771.43 1.5238095 Depreciation $ 73,000.00 Visits $ 43,452.38 $ 29,547.62 5.7936508 Bad Debt Expenses $ 10,400.00 Visits $ 6,190.48 $ 4,209.52 0.8253968 Total Expenses: $2,072,980.00 Visits $ 1,233,916.67 $ 839,063.33 164.52222 Income (LOSS) Before taxes $ 152,252.00 Visits $ 90,626.19 $ 61,625.81 12.083492 Taxes $ 60,901.00 Visits $ 36,250.60 $ 24,650.40 4.8334127 Income (LOSS) after taxes $ 91,351.00 Visits $ 54,375.60 $ 36,975.40 7.2500794 Budget Parameters Alpha Beta Total Visits, budgeted 7,500 5,100 12,600 Average revenue per visit ($) with no inseased basic visit fee 160 240 400 1200000 1224000 2424000
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