Question

An ophthalmology practice is analyzing it outputs, cost, and prices to determine if changes are needed. The practice provides five types of eye surgery: Lasik, Photorefractive keratectomy, Lens implants, Cataract surgery and Vitrectomy. Current output costs are based on total practice costs of $2,000,000 and the physician's assessment in 2016 of how much time she devotes to each type of surgery (surgery is performed twice per week or 768 hours per year are devoted to surgery) 1. Calculate cost per output given the physician's time estimate, do current prices cover costs? Price % Time 30% 20% 25% 15% 10% Cost/Output Surge Lasik Photorefractive keratectomy Lens implants Cataract surgery Vitrectomy Quantity 847 491 523 264 239 ry $800 $700 $1,000 $900 $1,200