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What are the excess capacity costs

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Suppose DPOS dedicates the following resources to handle all office visits: 2.5 surgeons, 2 ambulatory service representatives, 2 registered nurses, and 1 clinical assistant. During the year, the office performs 4,400 Plagiocephaly visits, 2,200 Neoplasm visits, and 1,800 Craniosynostosis visits. Is there any excess capacity for the four types of personnel? If so, what are the excess capacity costs? How can Dr. Meara reduce the costs of excess capacity? More generally, should Dr. Meara try to reduce the costs of excess capacity?

Reference no: EM132418488

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