Beth Oliver Mod 3 Journal Mini Case Study.docx

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The text in Exhibit 6.6 addresses “classifying costs in relation to a unit of product or service, fixed cost change in relation to volume and variable costs remain constant per unit” (Nowicki, 2015). When referencing the physician’s group the cost would be a service. Additionally you would want to take into consideration the breakeven point by analyzing the current fixed cost to that of the charge and variable cost. Since the physician’s office provides a service there would be no overhead cost for storing product but a fixed cost of running utilities and use of equipment. There is however, a time limit that these said services are available to the customer. By offering more times their services would be available, increasing volume, would increase profitability without increasing rates. Therefore, based on Exhibit 6.5 looking at the unit cost multiplied by the volume verses the charge per unit and volume sold one would hope to see an increase so that
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  • Spring '18
  • Nowicki

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