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Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined, fewer staff would be needed, and direct

Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined, fewer staff would be needed, and direct costs could be reduced by $50,000 ($25,000 in each unit). She also feels that the day-op area is underutilized, and that 500 square feet could be used by a combined unit when excess capacity was needed. Assuming that the 500 square feet were to be allocated equally between the endoscopy and cystoscopy suites, (in addition to the renovations described: 500 square feet of administrative space converted into another cystoscopy bay-no additional costs incurred), what would the total allocated costs for each of these two services be under this scenario?

 

 

Square Footage

 

 

Direct Expenses

 

 

Lab Tests

 

 

Utilities

 

 

 

 

$ 400,000

 

 

 

 

Administration

 

 

4,000

 

 

$700,000

 

 

 

 

Laboratory

 

 

2,000

 

 

$750,000

 

 

 

 

Day-op Suite

 

 

4,000

 

 

$2,500,000

 

 

6,000

 

 

Cystoscopy

 

 

2,000

 

 

$575,000

 

 

2000

 

 

Endoscopy

 

 

1,000

 

 

$300,000

 

 

1,500

 

 

Total

 

 

13,000

 

 

$ 5,225,000

 

 

9,500

Jul 16 2021 View more View Less

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