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Your hospital has been approached by a major HMO to perform all their MSDRG 505 cases (foot surgeries). They have offered a flat payment of $8,000 per case. You have reviewed your charges for MSDRG 505 during the last year and found the following profile: Average Charge: $11,300 Average LOS: 4.5 Days Cost/Charge Variable Cost % Routine Charge $3,200 0.75 65 Operating Room 1,850 0.70 80 Anesthesiology 210 0.70 75 Lab 575 0.65 40 Radiology 275 0.65 50 Medical Supplies 3,220 0.60 85 Pharmacy 955 0.55 85 Other Ancillary 1,015 0.75 55 Total Ancillary $8,100 0.70 75 In the above data set, assume that the hospital's cost-to-charge ratio is 0.75 for routine services and 0.70 for Total Ancillary services. Using this information, what would the average cost of MSDRG 505 be? (Your answer might be slightly different due to rounding. Pick the closest.)
Under the accrual basis of accounting, expenses are reported in the accounting period when the - Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as. A typical entry in t..
Who are the users of ratio analysis and Describe what ratio analysis is to your classmates.
After a preliminary assessment has been made of Lakeside's control risk, what possible actions can be taken by the auditors?
Evaluate net profit margin, total asset turnover and current ratio.
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $350,000 and will be sold for $50,000 at the end of the project. Assume tax rate is 35%. Find the asset’s book value at the time ..
Various criteria will disqualify the deduction of a business or investment related expenditure. Which of the following criteria will not disqualify a business or investment expenditure?
Discuss the pros and cons of financing in unhedged Eurodollars instead of via Euro euros. As you do this you must give consideration to the foreign exchange risks associated with financing in Eurodollars.
Compute the per-unit sales price that Sutherland should charge Desk-Mate to earn $500,000 in monthly pretax profit on the sale of drives to Desk-Mate. Show your work on how you came up with answer.
A corporation issued a $1,000 par value bond paying 4% interest with 10 years to maturity. Assume the current yield to maturity on such bonds is 5 %. What is the price of the bond?
Calculation of Adjustment Entries for COLO COMPANY Work Sheet For Month Ended May 31, 2005
Accounting standards place limits on the set of allowable alternative accounting treatments, but the accountant must still exercise judgment to choose among the remaining alternatives. In making those choices, which of the following should the accoun..
Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Support your answer with analyses.
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