Find the fee schedule for these services suppose that goal

Reference no: EM13477061

The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with the cost and utilization data, are as follows:

Services	Variable cost per service	Annual direct fixed costs	Annual Number of Visits
Basic examination	5	50,000	3,000
Advanced examination	7	30,000	1,500
Therapy session	10	40,000	500

a. What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed costs?

b. Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this to the three services listed above. What is the fee schedule assuming that these overhead costs must be covered? (to answer this question, assume that the allocation of overhead costs to each service is made on the basic of number of visits.)

c. Assume that these services must take a combined profit of $25,000. Now what is the fee schedual? (to answer this question, assume that the profit requirement is allocated in the same was as overhead costs.)

Reference no: EM13477061

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