Ch.8 Budgeting Exercises_Solution_NoFormulas

Ch.8 Budgeting Exercises_Solution_NoFormulas - Static...

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Static Budget Assumptions Chelsea Clinic Volume: Total Visits 90,000 Payor Mix: Blue Cross 40% Highmark 60% Total Reimbursement Rates: Blue Cross $25.00 per visit Highmark $20.00 per visit Variable Costs: Quantity: Labor 0.5333 hours / visit Supplies 1.1111 units / visit Prices: Labor $25.00 per hour Supplies $1.50 per unit Fixed Costs: $500,000
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Statistics Budget Chelsea Clinic Annual Visit Volume by Payer Blue Cross 36,000 Highmark 54,000 Total 90,000 Variable Resource Requirements Labor (in hours) 48,000 Supplies (in units) 100,000
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Revenue Budget Chelsea Clinic Net Patient Service Revenue by Payer Blue Cross $900,000 Highmark $1,080,000 Total Net Patient Service Revenue $1,980,000
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Expense Budget Chelsea Cliniic Variable Costs Labor $1,200,000 Supplies $150,000 Total Variable Costs $1,350,000 Fixed Costs $500,000 Total Costs $1,850,000
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Operating Budget Chelsea Clinic Revenues Net patient service revenues: Blue Cross $900,000 Highmark 1,080,000 Total net patient service revenues 1,980,000 Expenses Labor 1,200,000 Supplies 150,000 Total variable expenses 1,350,000 500,000 Total expenses 1,850,000 Projected Profit (Loss) $130,000
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This note was uploaded on 02/24/2010 for the course HPM 340 taught by Professor Reiter during the Spring '10 term at UNC.

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Ch.8 Budgeting Exercises_Solution_NoFormulas - Static...

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