get well c - GET WELL BUDGET 1 Running head: GET WELL...

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GET WELL BUDGET 1 Running head: GET WELL BUDGET Getwell Clinic: Get Well’s Budget Rene Avila ACC/HC 561 Ruth E Brown November 14th 2011
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GET WELL BUDGET 2 Given the variable expenses per visit, I recommend that a new clinic service be introduce with the following features: Service: mammograms Charge: $40 Target market: 25% of the 25% expected patients out of the 24,000 population. The target 25% number of patients for this service is based on the 25% expected patients out of the total population in the community as converting these patients into the new service would be easier since they are already a establish market. The tables below present the projected income statement for this new service. Year 2016 2017 2018 2019 Number of Patients 1,500 1,650 1,815 1,997 Charge fee per visit $40 $40 $40 $40 Total revenues $60,000 $66,000 $72,600 $79,860 Variable expenses: Medical supplies $6 $9,000 $10,890 $11,979 $13,177 Service bureau 1 1,500 1,815 1,997 2,196 Other operating 3 4,500 5,445 5,990 6,588 $15,000 $18,150 $19,965 $21,962 Depreciation expense 16,000 16,000 16,000 16,000 Total expenses $31,000 $34,150 $35,965 $37,962 Net income $29,000 $31,850 $36,635 $41,899 Assumptions:
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This note was uploaded on 11/21/2011 for the course HC ACC 561 taught by Professor Ruthbrown during the Fall '11 term at University of Phoenix.

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get well c - GET WELL BUDGET 1 Running head: GET WELL...

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