Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2024. MOSC expects to perform 80 surgical procedures during the month. MOSC’s average charge (price) per surgical procedure is $2,500. The cost of disposable surgical supplies is $300 per surgical procedure. MOSC also contracts with orthopedic surgeons at a fee of $1,500 per surgical procedure. The monthly salaries for MOSC’s receptionist, bookkeeper, and two surgical nurses total $10,500. MOSC’s occupancy costs, which include space rental, insurance, and all utilities, are $8,200 per month. Average monthly communication costs are $1,200. Office and operating room equipment was installed at a cost of $240,000. The equipment is expected to have a 5-year life and has no salvage value (Depreciation of $4,000 for every month). Prepare MOSC’s operating budget for the month of June 2024. My response: June 2024 Operating Budget for Monroe Outpatient Surgery Center June Revenue # $ Total Surgical Procedures 80 2500 200,000 Total Revenues $ 200,000 June Expenses # $ Total Personnel Orthopedic Surgeon Contracts 80 1,500 $ 120,000 Monthly Salaries (receptionist, bookkeeper, two surgical nurses) 10,500 Total Personnel 130,500 Non-Personnel Disposable Surgical Supplies 80 300 24,000 Communications 1,200 Occupancy Costs (rent, insurance, utilities) 8,200 Office and Operating Room Equipment 240,000 Total Non-Personnel 273,400 Total PS and NPS $ 403,900 Difference $(203,900)
Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2024. MOSC expects to perform 80 surgical procedures during the month. MOSC’s average charge (price) per surgical procedure is $2,500. The cost of disposable surgical supplies is $300 per surgical procedure. MOSC also contracts with orthopedic surgeons at a fee of $1,500 per surgical procedure. The monthly salaries for MOSC’s receptionist, bookkeeper, and two surgical nurses total $10,500. MOSC’s occupancy costs, which include space rental, insurance, and all utilities, are $8,200 per month. Average monthly communication costs are $1,200. Office and operating room equipment was installed at a cost of $240,000. The equipment is expected to have a 5-year life and has no salvage value (Depreciation of $4,000 for every month). Prepare MOSC’s operating budget for the month of June 2024. My response: June 2024 Operating Budget for Monroe Outpatient Surgery Center June Revenue # $ Total Surgical Procedures 80 2500 200,000 Total Revenues $ 200,000 June Expenses # $ Total Personnel Orthopedic Surgeon Contracts 80 1,500 $ 120,000 Monthly Salaries (receptionist, bookkeeper, two surgical nurses) 10,500 Total Personnel 130,500 Non-Personnel Disposable Surgical Supplies 80 300 24,000 Communications 1,200 Occupancy Costs (rent, insurance, utilities) 8,200 Office and Operating Room Equipment 240,000 Total Non-Personnel 273,400 Total PS and NPS $ 403,900 Difference $(203,900)
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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Monroe Outpatient Surgery Center (MOSC) is developing an operating budget for the month ending June 30, 2024. MOSC expects to perform 80 surgical procedures during the month. MOSC’s average charge (price) per surgical procedure is $2,500. The cost of disposable surgical supplies is $300 per surgical procedure. MOSC also contracts with orthopedic surgeons at a fee of $1,500 per surgical procedure. The monthly salaries for MOSC’s receptionist, bookkeeper, and two surgical nurses total $10,500. MOSC’s occupancy costs, which include space rental, insurance, and all utilities, are $8,200 per month. Average monthly communication costs are $1,200. Office and operating room equipment was installed at a cost of $240,000. The equipment is expected to have a 5-year life and has no salvage value (
My response:
| June 2024 Operating Budget for Monroe Outpatient Surgery Center | |||
| June Revenue | # | $ | Total |
| Surgical Procedures | 80 | 2500 | 200,000 |
| Total Revenues | $ 200,000 | ||
| June Expenses | # | $ | Total |
| Personnel | |||
| Orthopedic Surgeon Contracts | 80 | 1,500 | $ 120,000 |
| Monthly Salaries (receptionist, bookkeeper, two surgical nurses) | 10,500 | ||
| Total Personnel | 130,500 | ||
| Non-Personnel | |||
| Disposable Surgical Supplies | 80 | 300 | 24,000 |
| Communications | 1,200 | ||
| Occupancy Costs (rent, insurance, utilities) | 8,200 | ||
| Office and Operating Room Equipment | 240,000 | ||
| Total Non-Personnel | 273,400 | ||
| Total PS and NPS | $ 403,900 | ||
| Difference | $(203,900) |
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