3 page health care finance essay, business and finance homework help
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In 2013, the Gastroenterology Clinic of Pearland Medical Center had revenue totaling $14,550,400. The Gastroenterology Clinic costs data for a 12-month period from January 2013 through December 2013 were reported as follows:
|
Month, 2013 |
Number of Patient Visits |
Gastroenterology Clinic Costs, $ |
|
January |
6,755 |
945,700 |
|
February |
6,620 |
946,660 |
|
March |
5,834 |
880,934 |
|
April |
6,228 |
927,972 |
|
May |
7,554 |
944,250 |
|
June |
7,620 |
914,400 |
|
July |
7,136 |
949,088 |
|
August |
7,440 |
959,760 |
|
September |
6,453 |
942,138 |
|
October |
5,325 |
825,375 |
|
November |
5,588 |
854,964 |
|
December |
7,020 |
961,740 |
- Find the fixed and variable portion of costs using the high-low method.
- Calculate the contribution margin, the contribution margin ratio, and the per-visit revenue, costs, and operating income.
- Discuss the importance of computation of the contribution margin in evaluating the relationship of cost, volume, and profit.
- In deciding to continue (or to discontinue) a service, which revenues currently do not cover total cost, which is more important in the short run, variable cost or fixed cost? In the long run (with more service volume)? Why?
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