Calexico Hospital plans to invest $1.6 million in a new MRI machine. The MRI will be depreciated its 5-year economic life to a $200,000 salvage value. Additional revenues attributed to the new MRI will be in the amount of $1.5 million per year for 5 years. Additional operating expenses, excluding depreciation expense, will amount to $1 million per year for 5 years. Over the life of the machine, net working capital will increase by $30,000 over the life of the project.
Management wants to maintain the ending direct materials inventory at 60% of the following month's production needs. 4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month. 5. Watson's product requires 30 minutes of direct labor time.
Fixed expenses are $424,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A. Increase of $8,000 B.
Trinity Community Hospital has a long term goal of 2100 surgical cases, 6,500 physical therapy visits and a profit margin of $2,171,500 for its new orthopedic service line. Trinity Community Hospital can construct the new facility for approximately $120 per square ft. (5,000 square ft. building) if built on campus and would cost the hospital $600,000 .The hospital can also choose to build a new facility
Assume that patient demand, revenue per patient day, cost per patient day, cost per bed, and salary rates for the year ending June 30, 20x6, remain the same as for the year ended June 30, 20x5. Prepare a schedule of Pediatrics’ increase in revenue and increase in costs for the year ending June 30, 20x6. Determine the net increase or decrease in Pediatrics’ earnings from the additional 20 beds if Pediatrics rents this extra capacity from Susquehanna Medical Center. Assumptions: Variable cost per patient day: $120 Fixed cost per bed capacity(annual): $58,000 Demanded Patient days: 21,800 (20,000 +20 beds per day*90 days) Salaries: $576,000 Revenue per patient day: $360,000 Fixed costs, 20x6: Janitorial: $ 112,000 Repairs and Maintenance: $ 48,000 General and Administrative: $2,080,000 Rent: $2,400,000 Total: $4,640,000 Variable costs: Dietary: $ 784,800 Laundry: $
This number should help explain the importance of the Medicare market. <br>The Fargo Clinic, in 1993, had 250 physicians in 30 locations. Five of these are larger clinics, with the rest being smaller community-based facilities. They had over a million patient visits in 1992, with over half coming from Minnesota. Revenues were $150 million, which represented over a 50% growth in the last five years.
Chapter 16: Description of Capital Expenditure Proposals Scoring System Worthwhile Hospital has a total capital expenditure budget for next year of five million dollars. Of this amount, three million is already committed as spending for capital assets that have already been acquired and are in place. The remaining two million dollars is available for new assets and for new projects or programs. Worthwhile Hospital typically divides the available capital expenditure funds into monies available for inpatient purposes and monies available for outpatient purposes. This year the split is proposed to be 50-50.
Inventory per the books is $483,172. Your inventory turnover is one times per year and the industry standard is 1.5 times per year. Per our conversations over the year I have suggested that you should evaluate the inventory and those items that still have in inventory for more that 24 months should be either at a very little profit or at least at your cost. The sale of these items can then either reinvest into items that will turnover or to reduce debt. The accounts payable at the Fiscal Year End increased by almost 200%.
g. Find the 95% prediction interval for the sales for 1 week having 50 calls. Interpret this interval. h. What can we say about the sales when we had 100 calls in a week? (Points : 48) 4 Question 1. 1.
In a spend-down program, individuals are required to spend a portion of their income or resources on health care until they reach or drop below the income level specified by the state. The concept is similar to an annual deductible, except that it resets at the beginning of every month. Each month, the enrollee pays a portion of incurred medical bills, up to a certain amount, before the Medicaid fee schedule takes effect and Medicaid takes over payments. For example, a patient who has a $100 spend-down visits the physician on March 3 and is billed $75. The patient is responsible for paying the entire $75.