Sales Mix DecisionThe Textbook Solutions answer to 9AP for the book, Managerial Accounting 10th ed by Crosson and Needles, Chapter 9 – P9 under Alternative Problems is incorect.

Clarification to already answered question (can’t seem to get a response to my comments on the original question, and I need this before 10 tonight)
October 1, 2018
Business and Management Question – multiple choice questions about Psychology
October 1, 2018

Sales Mix DecisionThe Textbook Solutions answer to 9AP for the book, Managerial Accounting 10th ed by Crosson and Needles, Chapter 9 – P9 under Alternative Problems is incorect. The below is the correct question which needs to be answered as soon as possible. Sales Mix DecisionDr. Stott, who specializes in internal medicine, wants to analyze his sales mix to find out how the time of his physician assistant, Connie Mortiz, can be used to generate the highest operating income.Mortiz sees patients in Dr. Stott’s office, consults with patients over the telephone, and conducts one daily weight-loss support group attended by up to 50 patients. Statistics for the three services are as follows:Office VisitsPhone CallsWeight-Loss Support GroupMaximum number of patient billings per day204050Hours per billing.25.101.0Billingrate$50$25$10Variable costs$25$12$5 Mortiz works seven hours a day. Required1. Determine the best sales mix. Rank the services offered in order of their profitability.2. Based on the ranking in 1, how much time should Mortiz spend on each service in a day? (Hint: Remember to consider the maximum number of patient billings per day.) What would be the daily total contribution margin generated by Mortiz?3. Dr. Stott believes the ranking is incorrect. He knows that the daily 60-minute meeting of the weight-loss support group has 50 patients and should continue to be offered. If the new ranking for the services is (1) weight-loss support group, (2) phone calls, and (3) office visits, how much time should Mortiz spend on each service in a day? What would be the total contribution margin generated by Mortiz, assuming the weight-loss support group has the maximum number of patient billings? 4. Manager Insight: Which ranking would you recommend? What additional amount of total contribution margin would be generated if your recommendation is accepted?

 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp