Posted: September 14th, 2017

recommend to change its price to secure good profit margin by setting the prices in advance with the amount of resources consumed by each patient recommendation Custom Essay

-The emphasis in this assignment is on the application of ABC principles to a real-life situation. Provide

practical solutions to the partners. -You don�t have to tell them what to do, but you do need to identify

alternative courses of action from which the partners can choose. -Please change the text highlighted in blue

from theory to actual evaluation/ analysis of the scenario. -in thes second document please insert the txt

highlighted in red but in your own words! -no need to do the calculation, introduction as i have done it for you.

-reference more journals change the theory to analysis. relate it to the scenarios.use these points but relate it

to scenario its a memo, mention cost per hour -how is the patient related cost for an individual determined –

recommendation- mention recommendation to move from activity based costing to abc. =recommend to change its price

to secure good profit margin by setting the prices in advance with the amount of resources consumed by each

patient recommendation 3 will the price rise have an effect on patients using the services. if it doesnt then

could be possible to increase the prices. -also consider resource cost reduction -85% occupancy rate

recommendation- Mention the figures are based on 66% occupancy to get to 85% is quite high.The daily rate would

be reduced. The company had used 66% if they increase it to 85% this will have areal effect on the the activities

of the members and clients. Also the absorption costs will end up going up. the proposed increase would be a good

idea however Why?? Increased occupancy has long term benefits and increased periods