As practice manager, you are asked by the owner physicians to prepare a preliminary budget for adding a school sports physical exam to the practice using the following assumptions: • Time frame: one (1) month before fall season starts (July 30 - ending August 30), and one (1) month before winter season starts (October 20 - ending November 20). You should expect the practice to be able to complete one physical exam every 20 minutes (check-in to check-out), with physical exams offered on Tuesdays and Thursdays. The practice will dedicate two (2) exam rooms for these physicals with a physician assistant covering both rooms, assisted by a MA in each room. A practicing physician must review and sign-off on the PA exam (5 min). • The practice will charge 25 % over costs. Include labor +30 % fringe costs, consumable supplies of 20 % labor costs, and overhead of 10 % of labor costs. You must set the price and forecast total revenue assuming 70 % booking levels on all days. Forecast revenue and expenses for this project and provide a recommendation as to whether this is a worthwhile endeavor.

As practice manager, you are asked by the owner physicians to prepare a preliminary budget for adding a school sports physical exam to the practice using the following assumptions: • Time frame: one (1) month before fall season starts (July 30 - ending August 30), and one (1) month before winter season starts (October 20 - ending November 20). You should expect the practice to be able to complete one physical exam every 20 minutes (check-in to check-out), with physical exams offered on Tuesdays and Thursdays. The practice will dedicate two (2) exam rooms for these physicals with a physician assistant covering both rooms, assisted by a MA in each room. A practicing physician must review and sign-off on the PA exam (5 min). • The practice will charge 25 % over costs. Include labor +30 % fringe costs, consumable supplies of 20 % labor costs, and overhead of 10 % of labor costs. You must set the price and forecast total revenue assuming 70 % booking levels on all days. Forecast revenue and expenses for this project and provide a recommendation as to whether this is a worthwhile endeavor.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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