How many employees by type will the clinic need if it signs the contract for per-employment physicals?

8-2 Durham Health Clinic has a contribution margin of $35 per visit. Calculate the break-even point in visits with fixed costs at $4000, $6500, and $8500 per week. Given this analysis, as a manager, what would you recommend and why?
8-3 Durham Health Clinic is considering signing a contract to perform 50 pre-employment physicals per week for a specific corporation. In terms of staff time, a pre-employment physical requires 0.20 hours in Reception/Discharge, 0.45 hours in Nursing and Testing, and 0.20 hours in Medical Examination. By work-station, determine how many work hours per week will be needed to perform these physicals.
8-4 Currently the clinic does 250 visits per week, with 50% of all visits as return visits. Each employee (physician, nurse, and receptionist) is scheduled to work 35 hours per week.
a. How many employees by type does the clinic currently need?
b. How many employees by type will the clinic need if it signs the contract for per-employment physicals?
c. If return visits shift to 10% of all regular visits, how many employees by type will the clinic need with and without the contract for per-employment physicals?
d. How will the answers to “b” and “c” change if the number of physicals is modified to 35 per-employment physicals per week?

Throughout these analyses, specify all assumptions, including assumptions concerning worker productivity.

8-5 How would your answers change for problem 8-1 if nursing and testing time was increased to 0.50 hours for both first and repeat visits, and medical exam and treatment time was reduced to 0.30 hours for a first visit and 0.20 hours for a return visit?

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