Budgeting & Finance - Healthcare Please provide formula(s) as work needs to be t

Question

Budgeting & Finance - Healthcare Please provide formula(s) as work needs to be transferred to excel.

Cost Behavior: Problem 7

Determine Profit from Learning Disability Clinic Visits:

Average Price/Revenue Per Visit: $150

First Year’s Fixed Costs: $216,000 (clinical salaries, test kits, overhead)

Variable Cost: $5 per visit (based on each patient using two test booklets @ $2.50 per booklet)

Calculate: How much profit will the clinic make in the first year if they can schedule 10 patients per day (50 per week) for learning disabilities diagnostic work-ups?

Explanation / Answer

Calculation of profit for learning disability clinic visits: Total No. of visits during the year 3500 Average price / revenue per visit: $                          5,25,000 Less: Total Cost: Fixed Cost $                             2,16,000 variable Cost $                                17,500 Total Cost: $                          2,33,500 Profit made during the year $                          2,91,500

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