Reference no: EM132153882
As a manager of a small laboratory part of your efforts are to improve the profitability of your department. It has become imperative that you know the current financial status of your department. You have asked the CFO to provide you with current financial information about your department operations and financial status.
Allocated fixed costs = $285,000.00
Variable cost per procedure = $375.00
Annual volume = 550 procedures
Reimbursement per procedure = $850.00
Please answer the following questions:
a) What is the annual variable cost of your department based on the information given?
b) What is the annual total cost in your department based on the information given?
c) What is the fixed cost per procedure based on the information given?
d) What is the total cost per procedure based on the information given?
e) What is the excess or loss of revenue based on the information given?
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