Mcgannon Clinic Uses Patient-Visits as Its Measure of Activity

question 260

Essay

Mcgannon Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 3,700 patient-visits,but its actual level of activity was 4,100 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:
Revenue: $23.90q
Personnel expenses: $20,800 + $7.90q
Medical supplies: $800 + $3.50q
Occupancy expenses: $6,100 + $1.30q
Administrative expenses: $3,100 + $0.10q
The clinic reported the following actual results for November: Required:
Prepare the clinic's flexible budget performance report for November.Label each variance as favorable (F) or unfavorable (U).

Differentiate between short-run and long-run operations and outcomes for firms in a perfectly competitive market.

Explain the relationship between marginal cost, marginal revenue, average total cost, and the firm's supply decision.

Describe the demand curve faced by perfectly competitive firms and its implications.

Recognize the impacts of market entry and exit on the supply, demand, and pricing in the long run.

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Definitions:

Performance Metrics

Indicators used to gauge the efficiency, effectiveness, and performance of an organization's operations or activities.

Measure Map

A visual representation or tool used to track and display measurements, progress, or data points related to a specific process or goal.

Performance Perspectives

Various viewpoints or angles from which to assess or measure the performance of an organization, often including financial, customer, internal processes, and learning and growth aspects.

Strategy Map

A visual tool that illustrates how an organization plans to achieve its strategic objectives, often linked to the Balanced Scorecard methodology.