Solve the Following problem by answering the questions
Laurie Vaden is a physician with her own practice. She has developed contracts with several large employers to perform routine exams, fitness-for-duty exams, and initial screening of on-the-job injuries. She provides 100 exams per month, charging $100 per exam. Under this contract, she estimates her avoidable fixed costs attributable to the exams is $1,000 per month, and she pays a lab an average of $15 per exam. She has decided she needs to increase profit, so she is considering raising her fee to $125, even though there may be a 10 percent loss in the number of exams she does per month.
1. Determine the current and predicted: revenues, variable costs, and total contribution margin. What do you recommend she do? Why? Explain your reasoning
2. Select one business indicator and suggest how nurse managers could use the critical business indicator you selected to both meet the needs of a department or organization and remain within budget.
3. Provide a specific example.
4. Describe potential ramifications of making a financial decision without using business indicators
5. Specify strategies for addressing a situation where a break-even point is higher than expected revenues.
|Due By (Pacific Time)
||08/05/2015 11:32 pm