Your answer is partially correct. Try again Marla Mason owns and operates a home
ID: 2391884 • Letter: Y
Question
Your answer is partially correct. Try again Marla Mason owns and operates a home health care agency. She reported the following cost information for the first four months in 2017. Home Visit Hours Medical records automation and storage Medical testing supplies Insurance filing services Communications system lease 10,000 12,000 15,000 17,500 $5,000 $7,500 $9,000 $4,000 $4,800 $6,000 $4,250 $6,875 $13,125 $2,000 $2,000 Identify each of the following costs as fixed, variable, or mixed Items Medical records automation and storage Medical testing supplies Insurance filing services Communications system lease Type of Cost Mixed Cost Variable Cost Variable Cost Fixed CostExplanation / Answer
Variable Cost Per Unit
Medical Testing Supplies
Change in Cost/Change in Units
(9000-7500)/(12000-10000)
=
0.75
Insurance Filing Sercices
Change in Cost/Change in Units
(4800-4000)/(12000-10000)
=
0.4
Communications Systems lease
Change in Cost/Change in Units
(2000-2000)/(17500-12000)
=
0
Medical Records Automation and Storage
Change in Cost/Change in Units
(6875-5000)/(17500-10000)
=
0.25
Fixed Cost 2500
Home Visit Hours
10000 Hours
12000 Hours
15000 Hours
17500 Hours
Medical Records Automation and Storage
5000
5500
4250
6875
Medical Testing Supplies
7500
9000
11250
13125
Insurance Filing Sercices
4000
4800
6000
7000
Communications Systems lease
2000
2000
2000
2000
Working
Medical Records Automation and Storage
(12000 Hours *0.25)+2500
=
5500
Medical Testing Supplies
15000 Hours *0.75
=
11250
Insurance Filing Sercices
17500 Hours *0.4
=
7000
Communications Systems lease
Fixed At 2000
=
2000
Variable Cost Per Unit
Medical Testing Supplies
Change in Cost/Change in Units
(9000-7500)/(12000-10000)
=
0.75
Insurance Filing Sercices
Change in Cost/Change in Units
(4800-4000)/(12000-10000)
=
0.4
Communications Systems lease
Change in Cost/Change in Units
(2000-2000)/(17500-12000)
=
0
Medical Records Automation and Storage
Change in Cost/Change in Units
(6875-5000)/(17500-10000)
=
0.25
Fixed Cost 2500
Home Visit Hours
10000 Hours
12000 Hours
15000 Hours
17500 Hours
Medical Records Automation and Storage
5000
5500
4250
6875
Medical Testing Supplies
7500
9000
11250
13125
Insurance Filing Sercices
4000
4800
6000
7000
Communications Systems lease
2000
2000
2000
2000
Working
Medical Records Automation and Storage
(12000 Hours *0.25)+2500
=
5500
Medical Testing Supplies
15000 Hours *0.75
=
11250
Insurance Filing Sercices
17500 Hours *0.4
=
7000
Communications Systems lease
Fixed At 2000
=
2000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.