Falls Creek Community Health Clinic uses the high-low method to analyze cost behavior and has determined thatnumber of patients treated predict the clinic's total treatment costs. Determine the cost function (formula) fortotal treatment costs. What will the estimated treatment cost be if Falls Creek treats 1,402 patients in a month?TotalNumberTreatment ofPatientsCostsJanuary $3,410February $3,790$3,574$3,730$4,50010601180March1030April1260May1310$4,294June1430(Round your final answer to two decimal places)

High-low method is one of the methods used to analyse cost behaviour and can also used to determine…

Answered: Falls Creek Community Health Clinic…

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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Selected financial data for the Micco Community Health Clinic follows for a volume of 120,000 patients. Total Fixed Costs $304,144 Total costs (fixed and variable) $464,620 Calculate the variable cost per patient. (input your number without dollar signs or commas. Use 2 decimal places.)
To compute a daily rate that reflected the difference in demands, patients were placed in three categories according to illness severity, and the following annual data were collected: Cost of Activity Activity Driver $ 546,780 2,132,200 441,630 4,185,700 $7,306,310 Activity Lodging Monitoring Feeding Nursing care Total The demands associated with patient severity are also provided: Severity Patient Days Monitoring Hours Nursing Hours High Medium Low 7,170 10,180 3,680 $ Patient days Monitoring hours used Patient days Nursing hours High severity Medium severity Low severity 15,170 12,030 3,260 133,100 72,900 14,300 Required: 1. Suppose that the costs of daily care are assigned using only patient days as the activity driver (which is also the measure of output). Compute the daily rate using this unit-based approach of cost assignment. If required, round your answer to the nearest cent. per day 2. Compute activity rates using the given activity drivers (combine activities with the same…
Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: Average charge: $15,000 Average LOS: 5 Days Cost/Charge Variable Cost % Routine charge $3,600 0.80 60 Operating room 2,657 0.80 80 Anesthesiology 293 0.80 80 Lab 1,035 0.70 30 Radiology 345 0.75 50 Medical supplies Pharmacy 4,524 0.50 90 1,230 0.50 90 Other ancillary 1,316 0.80 Total ancillary $11,400 0.75 60 50 The HMO in the preceding example has indicated that their doctors use less expensive joint implants. If this less expensive implant is used, your medical supply charges would be reduced by $2,000. What is the estimated reduction in variable cost?
How do I determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June? Problem E21-23
Answer numbers 10-12.
Don't use chatgpt, correct answer provide
The variable cost was 5.40 fixed cost was 1500

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