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Decision Making Example

The document provides an example calculation to determine a procedure's total contribution to profit and overhead per year based on a pessimistic sales forecast of 1,500 patients. It shows that with 1,500 patients, the procedure's total contribution would be $50,000.

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23 views

Decision Making Example

The document provides an example calculation to determine a procedure's total contribution to profit and overhead per year based on a pessimistic sales forecast of 1,500 patients. It shows that with 1,500 patients, the procedure's total contribution would be $50,000.

Uploaded by

mhd slmn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Example 2

If the most pessimistic sales forecast for the proposed


service from Figure A.1 was 1,500 patients, what would be
the procedure’s total contribution to profit and overhead per
year?
pQ  (F + cQ ) = 200(1,500)  [100,000 + 100(1,500)]
= $50,000

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