Reference no: EM132024273

An ophthalmology practice is analyzing it outputs, cost, and prices to determine if changes are needed. The practice provides five types of eye surgery: Lasik, Photorefractive keratectomy, Lens implants, Cataract surgery and Vitrectomy. Current output costs are based on total practice costs of $2,000,000 and the physician’s assessment in 2016 of how much time she devotes to each type of surgery (surgery is performed twice per week or 768 hours per year are devoted to surgery).

Calculate cost per output given the physician’s time estimate, do current prices cover costs?

Surgery               Price      % Time   Quantity       Cost/Output

Lasik               $800       30%       847       _________

Photorefractive keratectomy   $700       20%       491       _________  

Lens implants           $1,000       25%       523       _________

Cataract surgery       $900       15%       264       _________

Vitrectomy           $1,200       10%       239       _________