You are watching: Which of the following statements best describes the contribution margin?
When a provider has actually market dominance, and hence can set its own prices (within reason), the is referred to as a price taker. (T/F)
Which of the adhering to pricing techniques is most most likely to lead to long-term jae won sustainability? a. Full expense b. Marginal expense c. Direct cost d. Indirect cost e. Variable cost
Under capitation, the contribution margin is negative when volume is measure up by systems of calculation (per visit, every procedure, every patient day, and also so on). (T/F)
Which that the follow statements ideal describes the contribution margin? a. The contribution margin is characterized as fixed prices minus variable costs. B. The contribution margin is the dollar lot of every unit of calculation that is available an initial to cover fixed costs and then to contribute to profit. c. The contribution margin is identified as revenues minus addressed costs. D. The complete contribution margin is defined as the donation margin multiplied by total revenues. E. The full contribution margin is defined as the donation margin multiplied by full costs.
b. The donation margin is the dollar amount of every unit of calculation that is available an initial to cover solved costs and also then to contribute to profit.
Utilization administration is more important for capitated patients than for fee-for-service patients. (T/F)
Which that the adhering to statements concerning the relationship between reimbursement technique and danger is most correct?Select one: a. Under capitation, danger is reduced by maximizing fixed costs. B. Under capitation, risk is lessened by maximizing variable costs. C. Under fee-for-service, hazard is decreased by maximizing fixed costs. D. Under fee-for-service, threat is reduced by maximizing change costs.e. Both a. And also b. Over are correct.
Consider the complying with data:Fixed costs = $10,000,000.Variable expense per inpatient work = $400.Revenue per inpatient work = $1,200.What is the breakeven volume (in patience days)?Select one: a. 2,500 b. 5,000 c. 7,500 d. 10,000 e. 12,500
Consider the adhering to data:Fixed costs = $10,000,000.Variable cost per inpatient day = $400.What revenue every inpatient day is forced to obtain a benefit of $1,000,000 in ~ a volume the 10,000 patient days? a. $ 750 b. $1,000 c. $1,250 d. $1,500 e. $1,750
Assume the complying with cost and also revenue data for basic Hospital:Fixed costs = $15,000,000.Variable price per inpatient job = $250.Revenue every inpatient job = $1,000.What is the expected profit in ~ a volume of 25,000 inpatient days? a. -$3,750,000 b. $ 0 c. $1,750,000 d. $2,750,000 e. $3,750,000
Assume the adhering to cost and revenue data for general Hospital:Fixed costs = $15,000,000.Variable cost per inpatient day = $250.Revenue per inpatient day = $1,000.What is the breakeven volume (in patience days)?Select one: a. 15,000 b. 17,500 c. 20,000 d. 22,500 e. 25,000
Super Clinics supplies one company that has the following yearly cost and also volume estimates:Variable expense per visit = $ 10Annual direct fixed prices = $50,000Allocation the overhead expenses = $20,000Expected volume = 1,000 visitsWhat price every visit must be set if the clinic wants to make an annual profit of $10,000 on the service?Select one: a. $ 70 b. $ 80 c. $ 90 d. $100 e. $110
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