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Chelsea Clinics PROJECTED budget information for 2020 is listed below. Please use this information to answer the questions below.
| Chelsea Clinic | | |
| | | | |
| Total FFS Visit Volume | 90,000 | visits |
| Payer Mix: | | |
| | Blue Cross | 40% | |
| | Highmark | 60% | |
| Reimbursment Rates | | |
| | Blue Cross | $25 | per visit |
| | Highmark | $20 | per visit |
| Variable Costs | | |
| Resource Inputs | | |
| | Labor | 48,000 | total hours |
| | Supplies | 100,000 | total units |
| Resource Input Prices | | |
| | Labor | $ 25.00 | per hour |
| | Supplies | $ 1.50 | per unit |
| Fixed Costs (overhead, plant and equipment) | $ 500,000.00 | |
1a. Based on the projected budget information calculate the total budgeted costs.
Choice: $1,850,000
Choice: $1,455,000
Choice: $2,200,400
Choice: $1,000,000
1b. Based on the projected budget information, calculate the contribution margin.
Choice: $550,000
Choice: $630,000
Choice: $874,000
Choice: $1,000,000
1c. Based on the projected budget information, calculate the budgeted profit.
Choice: $98,000
Choice: $117,000
Choice: $130,000
Choice: $158,000
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