5.6 Review the walk-in clinic data presented in problem 5.5. Construct projected P&L statements at volume levels of 8,000,9,0000, 10,000, 11,000, and 12,000 visits. (Hint: The concept of operating leverage, reviewed in this problem, iscovered in the chapter 5 supplement.)a. Construct the clinic's projected P&L statement.5.5 Revenues (10,000 visits)details Wages and benefitsRentDepreciationUtilitiesMedical suppliesAdministrative supplies$ 400,000$220,000$$$$$5,00030,0002,50050,00010,000b. Now assume that the base case volume is 9,000 visits. What is the DOL at this volume?

Answered: 5.6 Review the walk-in clinic data…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Answer question 3-4 using the information below: Fantasy Book and Music Store has two support departments and two production departments. Costs of each department are presented below. Data on budgeted warehouse-hours and number of computer log-on hours for cost allocation of support departments are as follows: Support Departments Production Departments Warehouse Data Center Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $495,000 1,750 $412,500 3,500 2,800 $1,155,000 $495,000 N/A 5,250 3,500 700 N/A 3. Using the direct method, how much are the total costs of the Books Department? A. $495,000 B. $275,000 C. $693,000 D. $1,463,000 4. Using the step-down method, what amount of Data Center Department cost will be allocated to Music Department if the service department with the highest percentage of interdepartmental support service is allocated first? A. $387,229 B. $220,001 C. $307,267 D. $381,150
EXCEL PROBLEM 6-9. Choice of Allocation Base, Problems with Cost Allocation [LO 1] Tilden Financial Services has two divisions, Financial Planning and Business Consulting. The firm's accountants are in the process of selecting an allocation base to allocate centrally provided per- sonnel costs to the divisions. Two allocation bases have been proposed: salary and headcount (number of employees). Personnel costs are expected to to the allocation: $1,500,000. The following data relate Financial Planning Business Consulting Salaries $15,000,000 $5,000,000 ,006 Headcount 200 50 REQUIRED a. Prepare a schedule showing the allocations to the two divisions using each allocation base. b. Referring to your answer to part a, explain why allocations are sometimes considered arbitrary.
Make me eary answer
e Preview 4) F3 $ R 01- Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Price Cost of goods sold Gross profit F4 Customer service Project bidding Engineering support Total costs In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: S⁰5 Activity Number of service requests Number of bids Number of customer design changes Unit volume % Activity 3:0 F5 T Activity-base usage and unit volume information for the…
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CHAPTER 17: FINANCIAL CONDITION ANALYSIS Homework Problem 5.2 Healthy Medical Center OPERATING DATA Net inpatient revenue Net outpatient revenue Net patient service revenue Inpatient operating expenses Total salaries Total discharges Inpatient days # licensed and staffed beds Total FTES Inpatient FTES OPERATING INDICATOR ANALYSIS Calculate the following ratios based upon the data above Profit per Discharge Net Price per Discharge Outpatient Revenue % Occupancy Rate Average Length of Stay Inpatient FTES per Occupied Bed $40,902,330 $26,150,670 $67,053,000 $39,675,260 $18,964,670 Salary per FTE 7,498 34,491 163 496 292 Healthy Medical Center Industry Average $73 $5,965 58.5% 56.6% 4.7 5.6 $33,977 For each ratio, provide a brief ratio analysis and comparative analysis. Indicator Analysis: Briefly explain what the indicator means Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis…
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6.2 Refer to Problem 6.1. Assume that the three patient services departments are adult services, pediatric services, and other services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Revenue Housekeeping Hours Adult Services $3,000,000 1,500 Pediatric Services 1,500,000 3,000 Other Services 500,000 Total $5,000,000 500 5,000 a. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? b. What is the dollar allocation to each patient services department if hours of housekeeping support is used as the cost driver? c. What is the difference in the allocation to each department. between the two drivers? d. Which of the two drivers is better? Why?
Exercise 14-29 (Algo) Compute RI and ROI (LO 14-2, 3) The Custodial Division of Clark's Corporate Services (CCS) has assets of $1.2 million. During the past year, the division had profits of $240,000. CCS has a cost of capital of 7.5 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Custodial Division. b. Compute the divisional RI for the Custodial Division. Complete this question by entering your answers in the tabs below. Required A Required B Compute the divisional ROI for the Custodial Division. Divisional ROI %
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