Nursing home revenue review

Nursing home revenue review

Jackson County Senior Services is a non-profit organization dedicated to providing essential services to seniors living in their own homes throughout Jackson County. For seniors, three services are available: home nursing, Meals on Wheels, and housekeeping. Nurses visit seniors in their homes on a regular basis to check on their general health and to perform tests ordered by their doctors. Each senior enrolled in the Meals On Wheels program receives a hot meal once a day. Weekly housecleaning and maintenance services are provided by the housekeeping service. The following are revenue and expense figures for the previous year: Meals on Wheels for Total Home Nursing

House

keeping

Revenues $ 926,000 $ 267,000 $ 406,000 $ 253,000

471,000 113,000 199,000 159,000

455,000 154,000 207,000 94,000

Expenses that are constant:

Depreciation s 69,000 s 8,300 s 40,600 s 20,100

43,900 20,800 7,600 15,500

Salary range for program administrators: 115,300-40,900-38,300-36,100

Administrative overhead* 185,200 53,400 81,200 50,600

413,400 123,400 167,700 122,300

Net operating income (loss): $41,600 ($30,600)

$ 39,300 $ -28,300

 

 

*Allocated based on program revenue.

 

 

Judith Miyama, the head administrator of Jackson County Senior Services, is concerned about the organization’s finances and believes the net operating income of $41,600 last year was insufficient. (Last year’s results were very similar to previous years’ results and are indicative of what can be expected in the future.) She believes that the organization should be increasing its financial reserves at a faster rate to prepare for the next inevitable recession. Ms. Miyama requested more information about the financial feasibility of discontinuing the housekeeping program after viewing the above report. Housekeeping depreciation is for a small van that transports housekeepers and their equipment from job to job. If the program is canceled, the van will be given to a charitable organization. Depreciation charges are based on a salvage value of zero. If the housekeeping program were dropped, no general administrative overhead would be avoided, but liability insurance and the program administrator’s salary would be avoided.
Required:

 

 

1a. What is the impact of discontinuing the housekeeping program on net operating income? (Enter the amount as a positive number.) In your response, leave out the “$” sign.) (Click to choose) Increase Net operating income is down by $.

1b. Should the housekeeping program be axed?

 

Yes

 

No

2 Would a segmented income statement format be more useful to management in determining the long-term financial viability of various services?

 

Yes

 

No

 

 

 

 

 

2.

value:

17.00 marks

 

 

 

Climate-Control, Inc. manufactures a wide range of heating and cooling units. Currently, the company manufactures all of its own component parts. Climate-Control has received an offer from an outside supplier to sell a thermostat for $33 per unit. Climate-Control, Inc. has gathered the following information about its own cost of producing the thermostat internally to evaluate this offer: Priced per unit

15,800 Units

each year

$9,200 in direct materials

11 173,800 direct workers

1 15,800 Variable manufacturing overhead

Traceable fixed manufacturing overhead 9* 142,200

Common fixed manufacturing overhead, but allocated 13 205,400

Total cost: $ 43,679,400

 

 

 

 

 

 

*40% of supervisory salaries; 60% of special equipment depreciation (no resale value).

 

Required:

 

1a. Assuming that the company has no other use for the facilities that are now being used to manufacture the thermostat, calculate the total cost of making and purchasing the parts.

 

(Round your Fixed manufacturing overhead per unit rate to two decimal places, and round your final answers to the nearest dollar amount.)

 

In your response, leave out the “$” sign.)

 

Purchase the total relevant cost (15,800 units)

 

$ $

 

 

1b. Should the offer from the outside supplier be accepted?

 

Accept

 

Reject

 

2a. Assume Climate-Control, Inc. could use the freed capacity to launch a new product if the thermostats were purchased. The new product’s segment margin would be $150,720 per year. Calculate the total cost of manufacturing and purchasing the parts. (Round your Fixed manufacturing overhead per unit rate to two decimal places, and round your final answers to the nearest dollar amount.) In your response, leave out the “$” sign.) Purchase the total relevant cost (15,800 units) $ $

 

 

2b. Should Climate-Control, Inc. accept the outside supplier’s offer to buy the thermostats for $33 each?

 

Reject

 

Accept

 

3.

value:

17.00 marks

 

 

 

Miyamoto Jewelers is considering placing a special order for 22 handcrafted gold bracelets to be given as wedding party gifts. A gold bracelet’s normal selling price is $407, and its unit product cost is $269, as shown below: $143 for direct materials 90 % direct labor 36. Manufacturing overhead The unit price is $269.

The majority of manufacturing overhead is fixed and unaffected by fluctuations in the amount of jewelry produced in any given period. However, $6 of the overhead is dependent on the number of bracelets produced. The customer who is interested in the special bracelet order would like the bracelets to have special filigree. This filigree would necessitate the purchase of additional materials at a cost of $5 per bracelet, as well as the purchase of a $465 special tool that would be useless once the special order was completed. This order would have no effect on the company’s regular sales, and it could be filled using the company’s existing capacity without interfering with any other orders.
Required:

 

a. How would accepting this order affect the company’s net operating income if a special price of $367 is offered per bracelet? (Enter the amount as a positive number.) In your response, leave out the “$” sign.) Net operating income (click to choose) increaseddecreased by $.

b. Is the special order acceptable at this price?

 

No

 

Yes

 

 

4.

value:

17.00 marks

 

 

 

Sport Luggage Inc. manufactures high-end hard-sided luggage for sporting goods. Data for three of the company’s most popular models are provided below.

Ski

Vault

Golf

Caddy

Fishing

Quiver

$ 250 per unit selling price

$ 320 s $ 215

Variable unit cost $ 110 $ 210 $ 155

Processing time for a plastic injection molding machine to produce one unit

fourteen minutes

13 minutes and 11 seconds

Plastic pellets in pounds per unit

9 kilograms 10 kilograms 14 kilograms

Required:
1a. The total time available on the plastic injection molding machine is the production process’s constraint. What is the contribution margin per unit of resource constraint for Ski Vault, Golf Caddy, and Fishing Quiver? (Round your answers to the nearest two decimal places.) In your response, leave out the “$” sign.) Contribution margin Ski Vault Golf Caddy Fishing Quiver a dollar per minute a dollar per minute a dollar per minute

Important information for writing discussion questions and participation

Welcome to class

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I understand this is a lot of information to cover in 5 weeks, however, the Bible says in Philippians 4:13 that we can do all things through Christ that strengthens us. Even in times like this, we are encouraged by God’s word that we have that ability in us to succeed with His strength. I pray that each and every one of you receives strength for this course and life generally as we navigate through this pandemic that is shaking our world today. Relax and enjoy the course!

Hi Class,

Please read through the following information on writing a Discussion question response and participation posts.

Contact me if you have any questions.

Important information on Writing a Discussion Question

• Your response needs to be a minimum of 150 words (not including your list of references)
• There needs to be at least TWO references with ONE being a peer reviewed professional journal article.
• Include in-text citations in your response
• Do not include quotes—instead summarize and paraphrase the information
• Follow APA-7th edition
• Points will be deducted if the above is not followed

Participation –replies to your classmates or instructor

• A minimum of 6 responses per week, on at least 3 days of the week.
• Each response needs at least ONE reference with citations—best if it is a peer reviewed journal article
• Each response needs to be at least 75 words in length (does not include your list of references)
• Responses need to be substantive by bringing information to the discussion or further enhance the discussion. Responses of “I agree” or “great post” does not count for the word count.
• Follow APA 7th edition
• Points will be deducted if the above is not followed

• Remember to use and follow APA-7th edition for all weekly assignments, discussion questions, and participation points.
• Here are some helpful links
• The is a great resource

 

 

1b. Which product would make the best use of this constraint?

 

Vault for Skis

 

Quiver for Fishing

 

Caddy for Golf

1c. Which product would benefit the least from this constraint?

 

Vault for Skis

 

Quiver for Fishing

 

Caddy for Golf

2a. Due to a severe shortage of plastic pellets, the company has reduced production to the point where the plastic injection molding machine is no longer the bottleneck. Instead, the total available pounds of plastic pellets are the constraint. What is the contribution margin per unit of resource constraint for Ski Vault, Golf Caddy, and Fishing Quiver? (Round your answers to the nearest two decimal places.) In your response, leave out the “$” sign.) Contribution margin Ski Vault Golf Caddy Fishing Quiver a dollar per pound a dollar per pound a dollar per pound

2b. Which product would make the best use of this constraint?

 

Vault for Skis

 

Quiver for Fishing

 

Caddy for Golf

2c. Which product would benefit the least from this constraint?

 

Vault for Skis

 

Quiver for Fishing

 

Caddy for Golf

3 Which of the following products has the highest unit contribution margin?

 

Vault for Skis

 

Quiver for Fishing

 

Caddy for Golf

 

 

5.

value:

17.00 marks

 

 

 

In a joint processing operation, Solex Company produces three products from a common input. The annual cost of joint processing up to the split-off point is $91,000. The costs are allocated to the joint products based on their total sales value at the split-off point. Product X is worth $52,000, product Y is worth $93,000, and product Z is worth $64,000. Each product can be sold at the split-off point or further processed. There are no special facilities required for additional processing. The annual additional processing costs and sales value after further processing for each product are shown below:
Product

Additional

Processing Fees

After-Sales Value

Additional Processing

X $ 39,000 $ 82,000

Y $ 39,000 $ 155,000

Z $ 9,000 $ 81,000

a. Determine the incremental profit (loss) for each product. (Loss figures should be denoted by a minus sign.) In your response, leave out the “$” sign.) Product X, Product Y, Product Z Profit increase (loss) $ $ $

b. At the split-off point, which product or products should be sold? (You may choose more than one option.) For a correct answer, single-click the box with the question mark to produce a check mark, and double-click the box with the question mark to empty the box.)

 

X is a product.

 

Y is a product.

 

Z product

c. Which product or products should be further processed? (You may choose more than one option.) For a correct answer, single-click the box with the question mark to produce a check mark, and double-click the box with the question mark to empty the box.)

 

X is a product.

 

Y is a product.

 

Z product

 

 

6.

value:

15.00 marks

 

 

 

Glade Company only makes one product. At the company’s current activity level of 8,200 units per month, the costs of producing and selling a single unit of this product are: $2.10 for direct materials $2.00 for direct labor $ 0.90 variable manufacturing overhead $ 4.85 fixed manufacturing overhead $ 1.00 in variable selling and administrative expenses Selling and administrative costs are fixed. $ 1.00

The standard selling price per unit is $20. The company’s monthly capacity is 9,300 units. A potential overseas customer has placed an order for 1,100 units at a price of $17.00 per unit. This order would have no effect on regular sales.
Required:

 

1 How much will monthly profits increase or decrease if the order is accepted? (The order would have no effect on the company’s total fixed costs.) (Enter the amount as a positive number.) In your response, leave out the “$” sign.) Monthly profits would (click to select) rise by $.

2 Assume the company still has 500 units of this product from last year that are inferior to the current model. The units must be sold at reduced prices through regular channels. What unit cost is important in determining the minimum selling price for these units? (Round your answer to the nearest two decimal places.) In your response, leave out the “$” sign.) Relevant unit cost $