Kirklin Clinic's projected budget information for 2020 is listed below FFS Visit Volume 100,000 Payer Mix: Blue Cross 25% Highmark 75% Reimbursement Rates Blue Cross Highmark Variable Costs Resource Inputs Labor Supplies Resource Input Prices visits $45 per visit $30 per visit 75,000 total hours 125.000 total units Labor $20.00 per hour Supplies $0.50 per unit Fixed Costs (overhead, $250,000.00 D plant and equipment) Based on this information, calculate the contribution margin. O $750,000 O $1,812,500 O $625,000 O $700,000
Kirklin Clinic's projected budget information for 2020 is listed below FFS Visit Volume 100,000 Payer Mix: Blue Cross 25% Highmark 75% Reimbursement Rates Blue Cross Highmark Variable Costs Resource Inputs Labor Supplies Resource Input Prices visits $45 per visit $30 per visit 75,000 total hours 125.000 total units Labor $20.00 per hour Supplies $0.50 per unit Fixed Costs (overhead, $250,000.00 D plant and equipment) Based on this information, calculate the contribution margin. O $750,000 O $1,812,500 O $625,000 O $700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Kirklin Clinic's projected budget information for 2020 is listed below
FFS Visit Volume
100,000
Payer Mix:
Blue Cross
25%
Highmark
75%
Reimbursement Rates
Blue Cross
Highmark
Variable Costs
Resource Inputs
Labor
Supplies
Resource Input Prices
visits
$45
per visit
$30
per visit
75,000
total hours
125.000
total units
Labor
$20.00
per hour
Supplies
$0.50
per unit
Fixed Costs (overhead,
$250,000.00
D
plant and equipment)
Based on this information, calculate the contribution margin.
O $750,000
O $1,812,500
O $625,000
O $700,000
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