Northeast Medical Group, a family practice, has the following financial data and operational trics Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician %2,748,360 $1,557,615 12,353 1,941 5.333 What is the group's revenue per physician? $2,748,360/5 $549,672 a. b. What is the group's operating cost per physician? $1,577,615/5 $311,523 What is the group's total operating profit? $2,748,360 $1,577,615 $1,190,745 c. What is the group's profit per physician? Per patient? Per visit? Per procedure? $1,190,725/5 $238,149 operating profit per physician $1941 x 5 9705 patients $1,190,745/9705 $122.69 operating profit per patient 5,333 x 5 26,665 total visits1,190,745/26,665 $44.66 operating profit per visit 12,353 x 5 61,765 1,190,745/61,765 S19.28 operating profit per procedure d. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new EKG (electrocardiogram) machine. Also, assume that the remainder of profits will be distributed equally to the group's physicians as salary. What compensation will each physician receive? e.
Northeast Medical Group, a family practice, has the following financial data and operational trics Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician %2,748,360 $1,557,615 12,353 1,941 5.333 What is the group's revenue per physician? $2,748,360/5 $549,672 a. b. What is the group's operating cost per physician? $1,577,615/5 $311,523 What is the group's total operating profit? $2,748,360 $1,577,615 $1,190,745 c. What is the group's profit per physician? Per patient? Per visit? Per procedure? $1,190,725/5 $238,149 operating profit per physician $1941 x 5 9705 patients $1,190,745/9705 $122.69 operating profit per patient 5,333 x 5 26,665 total visits1,190,745/26,665 $44.66 operating profit per visit 12,353 x 5 61,765 1,190,745/61,765 S19.28 operating profit per procedure d. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new EKG (electrocardiogram) machine. Also, assume that the remainder of profits will be distributed equally to the group's physicians as salary. What compensation will each physician receive? e.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...
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Part E. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new EKG machine, and that remainder of profits will be distributed equally to the group physican salary, What compensation will each physician receive?
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Transcribed Image Text:Northeast Medical Group, a family practice, has the following financial data and operational
trics
Number of physicians
Total revenue
Total operating costs
Total procedures per physician
Patients per physician
Visits per physician
%2,748,360
$1,557,615
12,353
1,941
5.333
What is the group's revenue per physician?
$2,748,360/5 $549,672
a.
b.
What is the group's operating cost per physician?
$1,577,615/5 $311,523
What is the group's total operating profit?
$2,748,360 $1,577,615 $1,190,745
c.
What is the group's profit per physician? Per patient? Per visit? Per procedure?
$1,190,725/5 $238,149 operating profit per physician
$1941 x 5 9705 patients $1,190,745/9705 $122.69 operating profit per patient
5,333 x 5 26,665 total visits1,190,745/26,665 $44.66 operating profit per visit
12,353 x 5 61,765 1,190,745/61,765 S19.28 operating profit per procedure
d.
Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a new
EKG (electrocardiogram) machine. Also, assume that the remainder of profits will be
distributed equally to the group's physicians as salary. What compensation will each
physician receive?
e.
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