Question

Need help with 2a, 2b, 2c please.

Always show your work when doing fun&exciting exercises! Box or circle final answers! Question 1) Apollo Hospital specializes in outpatient surgeries for relatively minor procedures. Apollo is a nonprofit institution and places great emphasis on controlling costs in order to provide services to the community in an efficient manner Apollo's CFO, Julie Chen, has been concerned of late about the hospital's consumption of medical supplies. To better understand the behavior of this cost, Julie consults with Rhett Bratt, the person responsible for Apollo's cost system. After some discussion, Julie and Rhett conclude that there are two potential cost drivers for the hospital's medical supplies costs. The first driver is the total number of procedures performed. The second is the number of patient-hours generated by Apollo. Julie and Rhett view the latter as a potentially better cost driver because the hospital does perform a variety of procedures, some more complex than others Rhett provides the following data relating to the past year to Julie. 1Month Medical Supplies costs Number of procedures Number of patient-hours $106,000 230.000 84.000 238.000 193.000 180.000 210.000 92.000 222000 83,000 27000 225.000 2,000 3.900 900 4.100 3.400 3.700 3.100 1.200 10 9 11 10 1.300 2.800 3,800 13 12 Required (round all numbers to two decimal places, if needed . Run a regression analysis on Excel for medical supplies costs using number of procedures as your driver Print a copy of the results and attach it to your homework. If you like, you can use this printout to write out your final answers to the following questions: Using your results from (1), write the cost formula for medical supplies cost. a. b. Using the cost formula from (la), what would medical supplies cost be for a month with 4 Using the high-low method, write the cost formula for medical supplies cost using numbr of Run a regression analysis on Excel for medical supplies costs using number of patient-hours as your driver. c. procedures as your driver. nt a copy of the results and attach it to your homework. If you like, you can use this printout to write Pri out your final answers to the following questions: Using your results from (2), write the cost formula for medical supplies cost. a. b. Using the cost formula from (2a), what would medical supplies cost be for a month with 3,333 tient-hours? Using the high-low method, write the cost formula for medical supplies cost using number of patient-hours as your driver. c. Based on your answers from parts 1 & 2, which driver (number of procedures or number of patient-hours is better for determining costs? Explain using R? as part of your answer 3. Note: On Ic and 2c, your fixed cost answers will be slightly different using the high mamber and/or the low number due to rounding. Whichever way you chose to solve it (high or low), just write that answer down

Answer 1

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