How would you address each of the 4 points raised by john

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Reference no: EM133372137

Questions: After reading the case study, Baker Medical Center, answer the following questions: (Remember, the task of completing the allocation study was given to you, Baker's current administrative fellow).

How would you address each of the 4 points raised by John, which were:
Is it fair for the Dialysis Center to suffer (in profitability) from the move even though it had nothing to do with it?
Should the Dialysis Center be charged actual facilities costs for its new location?
Even if the true cost concept was applied to the Dialysis Center, is the $400,000 annual allocation amount correct?
The revenue that the Dialysis Center "receives" from patient use of the pharmacy appears to be passed on directly to the pharmacy.
Do you support the proposed allocation scheme? If so, why? If not, how do you apply "cost-allocation" mathematically to potentially address this problem?

Reference no: EM133372137

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