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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: 2,072,980

Explanation / 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