Reference no: EM133577091
Problem
Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2022. The Center expects to perform 80 surgical procedures during the month. MOSC's average charge per surgical procedure is $2,500. The cost of disposable surgical supplies is $300 per surgical procedure. MOSC also contracts with orthopedic surgeons at a fee of $1,500 per surgical procedure. The monthly salaries for the Center's receptionist, bookkeeper, and two surgical nurses total $10,500. The Center's occupancy costs, which include space rental, insurance and all utilities are $8,200 per month. Average monthly communication costs are $1,200. Office and operating room equipment was installed at a cost of $240,000. The equipment is expected to have a 5-year life and has no salvage value. Depreciation has been calculated at $240,000 over 60 months.
You are to prepare MOSC's operating budget for the month of June, 2022. Be sure to include revenues that you will calculate, expenses that you will itemize, depreciation that you will calculate and include in expenses, and profit or loss that you will calculate. Your assignment includes research on components that are included in profit and loss statements as they relate to strategic planning of a unit, center, or program. Is MOSC successful? What would you do, if anything, to improve performance or efficiency?
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