Information summarizes charge and cost data
Course:- Financial Management
Reference No.:- EM13728183

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

The following information summarizes charge and cost data for Dr. Jones during the last year:

Number of Cases 100

Charges $700,000

Nursing Charges $350,000

Lab Charges $200,000

Pharmacy Charges $50,000

Radiology Charges $100,000

Please provide calculations

1. Assume that Dr. Jones’ patients pay an average 80 percent of charges. Also assume cost to charge ratios of 0.90 in Nursing, 0.80 in Lab, 0.50 in Pharmacy, and 0.70 in Radiology. What is the total profit earned on Dr. Jones’ patients?

2. Would your facility lose money if Dr. Jones decided to leave and take her patients to another hospital? Provide more than one reason why it is highly likely that a loss would result.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
What is the value of a bond that has a par value of $1000, a coupon rate of 15.67% (paid annually), and that matures in 7 years. Assume a required rate of return on this bond
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $70,500, has a 5-year life, and has an annual OCF (after tax) of –$11,400 per year. The Keebler C
Collect annual data on 1-year T-security rate (nominal rate of interest). Using the inflation rate data in #1, compute the "real rate of interest" for each year. (Hint: Fish
Jim Krakauer proposes to expand his restaurant supply business by adding an HVAC repair unit. Currently his customers, almost all restaurant owners, buy or order equipment fro
A company using activity based pricing marks up the direct cost of goods by 0.25 plus charges customers for indirect costs based on the activities utilized by the customer. Wh
For this and the next 2. Suppose the following facts apply: Spot currency rate ($/ = $1.28); Forward exchange rate for 1 year delivery = $1.25; US 1-year interest rate: rUS =
One year ago, the Jenkins Family Fun Center deposited $4,800 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding ano
You will make a variety of decisions. You should consider the financial and nonfinancial aspects while making decisions - evaluate scenarios, you will also use some tools such