You have been hired as the manager of a community health center. This health cen
ID: 2743531 • Letter: Y
Question
You have been hired as the manager of a community health center. This health center provides medical care to children. One of your first tasks is to develop a static annual budget for the health center. In fact, the Board of Directors wants to see your budget by Saturday at midnight.
In order to develop an accurate static budget you know you need to get some facts. You ask around to see what kind of information you can gather. This is what you find out:
The center pays rent of $12,000 per month.
The center has a number of full-time staff members: 4 physicians, 6 clinical staff members and 8 administrative staff members.
The center has to occasionally use part-time workers or pay overtime when patient volume is high.
The center sees about 3,000 patients per month.
Medical supply costs seem to run about $2 per patient.
Explanation / Answer
Ans;
Let fee charged from a patient be $100
Let Salary to a physician be $15000
Clinical Staff member be $10000
Administrative staff member be $7000
Let Other Expenses per month be $1000
Given data,
Rent:
Monthly Rent = $12000
Annual Rent = $12000 * 12 = $144000
Salaries:
Physician Salary = 4 * 15000 * 12 = $720000
Clinical Staff members = 6 * 10000 * 12 = $720000
Administrative Staff members = 8 * 7000 * 12 = $672000
Total = $720000 + $720000 + $672000 = $2112000
Number of patients per month = 3000
Medical Supply cost:
Monthly Cost = $2 * 3000 = $6000
Annual Cost = $6000 * 12 = $72000
Annual Other Expenses = $1000 * 12 = $12000
Fee Charged:
Monthly fees = 100 * 3000 = $300000
Annual Cost = $300000 * 12 = $3600000
Static Annual Budget:
Revenue:
Fee Charged $3600000
Expenditure:
Rent $144000
Salaries $2112000
Medical Supply Cost $72000
Other Expenses $12000 $2340000
Net Profit $1260000
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