Describe the three-level revenue forecast

Reference no: EM132742475

Assignment: Three-Level Revenue Forecast

Three eye-ear-nose-and-throat physicians decide to hire an experienced audiologist in order to add a new service line to their practice.

They ask the practice manager to prepare a three-level volume forecast as a first step in their decision making.

Assume audiologists were designated as "eligible for physician and other prescriber incentives." Thus the new service line was a logical move.

Assumptions: For the base level (most likely) revenue forecast, assume $200 per procedure times 4 procedures per day times 5 days equals 20 procedures per week times 50 weeks per year equals 1,000 potential procedures per year.

For the best-case revenue forecast, assume an increase in volume of one procedure per day average, for an annual increase of 250 procedures (5 days per week times 50 weeks equals 250). (The best case is if the practice gains a particular managed care contract.)

For the worst case revenue forecast, assume a decrease in volume of 2 procedures per day average, for an annual decrease of 500 procedures. (The worst case is if the practice loses a major payer.

Reference no: EM132742475

Questions Cloud

What is the value of a face value : What is the value of a $1,000 face value bond with a 6% quarterly pay coupon and 10 years left to maturity if the relevant discount rate

What is amount of gratuity and the applicable transfer tax : PAUL donated stock securities to his daughter, CHLOE , as reward to CHLOE for services rendered to PAUL. The property was worth 1,110,000 when PAUL wrote.

Disclosed effective annual rate : What rate did the manufacturer disclose? The disclosed effective annual rate was (Round to two decimal places as needed.)

Health sciences and nursing : Planning for our final paper. To begin, start thinking about a topic for our final persuasive essay - Locate five sources that will be helpful in the research

Describe the three-level revenue forecast : Three eye-ear-nose-and-throat physicians decide to hire an experienced audiologist in order to add a new service line to their practice.

Types of merger or consolidation activities : Briefly explains four (4) types of merger or consolidation activities in business. Provide an example for each type of merger.

Determine overall cost of capital for jasmine enterprise : Jasmine Enterprise is interested in measuring its overall cost of capital. The weighted average cost of capital (WACC) is to be measured using the following wei

Discussion of the general economic conditions : Discussion of the general economic conditions in the U.S. macroecomony and Discussion on analysis of the economic conditions and risk

Prepare journal entries for the lawsuit for the years : Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 60 percent probability that the company would lose the laws

User Account

All Pages