Question
Asked by:
$1.50 Help me this management question!!! I need clarity answers!!!
- From Business: Management
- Closed, but you can still post tutorials
- Due on Dec. 14, 2008
- Asked on Dec 11, 2008 at 11:09:09PM
Q:Breaking even
As of January1, 06, UND Family Health Service Center had 8 employees with a total annual salary budget of $400,000. The annual maintenance cost was estimated at $80,000. Based on 2005 data, the monthly patient service in 2006 was forecast to be 180 patients per month. For each patient serviced, the average variable cost incurred (paperwork, treatment materials, equipment depreciation, utility consumption) was estimated at $10, and average revenue per patient was projected to be $230.
1. Based on the above information, do you think the center manager can balance annual costs and annual revenues? Explain. What would you suggest to the manager?
2. If, by implementing more efficient operations management, the centers operating (variable) cost can be reduced to $8 per patient; do you think the center could balance its annual budget?
3. If dismissing employees becomes necessary to balance the budget, how many employees would you recommend be let go? Why?
4. At the end of June 2004, the manager showed you the following report:
Jan Feb March April May June
# of patients 150 140 152 145 130 145
What comments would you make to the manager?
Attachments:
Chapter18.1.docx (11K)
