um Chapter 7-Homework. p y D chapter 7-Homework. p x Y e chegg Study | Guided Sc C file://ircserver2.ad.uab.edu/data/studentfiles/Chapter%207%20-%20Homework.pdf #4. The audiology department at Randall Clinic offers many services to the clinic\'s patients. The three most common, along with cost and utilization data, are as follows: Variable Cost PerAnnual Direct Fixed Annual Number of Costs $50,000 $30,000 Service Unit S5 S7 Visits 3,000 1,500 Basic Examination Advanced Examination Therapy Session S10 $40,000 500 There is also $50,000 in general overhead expenses in addition to the \'Variable Cost Per Unit\' and \'Annual Direct Fixed Costs\' that must be allocated. What is the fee for schedule for a Basic Exam assuming that the overheard costs must be covered? #5, The audiology department at Randall Clinic offers many services to the clinic\'s patients. The three most common, along with cost and utilization data, are as follows: Variable Cost PerAnnual Direct FixedAnnual Number of Costs $50,000 $30,000 Service Unit S5 S7 Visits 3.000 1,500 Basic Examination Advanced Examination Therapy Session S10 $40,000 500 There is also S50,000 in general overhead expenses in addition to the \'Variable Cost Per Unit\' and \'Annual Direct Fixed Costs\' that must be allocated. What is the fee for schedule for an Advanced Exam assuming that the overheard costs must be covered? #6. The audiology department at Randall Clinic offers many services to the clinic\'s patients. The three most common, along with cost and utilization data, are as follows: Service Variable Cost Per Annual Direct FixedAnnual Number of Costs $50,000 $30,000 Unit S5 S7 Visits 3,000 1,500 Basic Examination Advanced Examinationn Session S10 $40,000 500 6:17 PM Type here to search Chapter 7 - Home... Document1 Word 7/9/2018
Soln : 4) Step 1: Need to find out the total cost involved in Basic Examination
Total Cost = Variable cost + General Overhead Expenses + Annual Direct fixed cost = 5x + 50000+50000
Total cost = 100000 + 5x, where x = total number of units = total no. of visits = 3000
Step 2 : Calculate the min. Fee required that will cover all these costs by dividing the total cost with number of visits
Min. Price/Fee = (100000+5*3000)/3000 = 115000/3000 = $38.33
Or we can say Min. Price to be Fixed at $39.00 at least to cover all costs.
5) Similarly as we have calculated for Basic , we can do it for Advanced Exam
Step 1 : Total Cost = 7x + 30000+50000 = 7x + 80000
Step 2 : Fee for Advanced Exam = (7*1500+80000)/1500 = 90500/1500 = 60.33
Min. Price/Fee for Advanced Exam should be atleast $61 to cover all expenses.
11) Step1 : Here the Inpatient days are given per 1000 employee
Need to calculate the Inpatient days for 50000 and also the cost for each Inpatient days
Total cost per 1000 employee (average) = 1367*425 = 580975
Total cost for 50000 = 580975*50000/1000 = $29048750
Total cost with administrative expenses = 1.1*29048750 = 31953625
PMPM = Per member per month cost = 31953625/(12*50000) = 53.26
PMPM = $ 53.25 (approx.)
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