Statistics for 3 services: Need help determining: 1) best sales mix, ranking the

Question

Statistics for 3 services:

Need help determining: 1) best sales mix, ranking the services offered in order of profitability 2) how much time should be spent on each service daily and what would be the daily total contribution margin generated. 3) If the new ranking was weight loss group, then phone calls followed by office visits, how much time would be spent on each service in a day and what would be the total contribution margin generated if the weight loss group has maximum number of patient billings?

Thanks for your help calculating this!

Office visits phone calls wt loss support group Max # of patient billings per day 20 40 50 Hours per billing .25 .10 1.0 Billing rate $50 $25 $10 Variable costs $25 $12 $5

Explanation / Answer

Statistics for 3 services:

total billing    20*.25 =5 40*.10 =4 50*1.0=50

  

Total billing Cost 5*50 = 250 4*25=100 50*10=500

Variable cost 25 12 10

Total Contribution Margin $250-$25=$225 $100-$12=$88 $500-$10=$490

  

  

Office visits phone calls wt loss support group Max # of patient billings per day 20 40 50 Hours per billing .25 .10 1.0 Billing rate $50 $25 $10 Variable costs $25 $12 $5

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