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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5f81d2c-6cc2-4fbe-a7b6-26f56b17e4d5%2F5346aba2-9d47-4d67-83a7-a5710e571318%2Ff8xglrjq_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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