Reference no: EM13493174

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

ServiceVariable Cost Annual DirectAnnual # Visits
per Service Fixed Costs
Basic exam$5$50,0003,000
Advanced examination$7$30,0001,500
Therapy session$10$40,000500

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

Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has al­ located $50.000 of this amount to the three services listed above.What is the fee schedule assuming that these overhead costs mustbe covered? (To answer this question, assume that the allocation of overhead costs to each service is made on the basis of numberof visits.)

Assume that these services must make a combined profit of $25,000 .Now what is the fee schedule? (To answer this question, assumethat the profit requirement is allocated in the same way as overheadcosts.)lied Laboratories is combining some of its most common.