Answer to Question #38659 in Finance for Veronica

Question

Based on the information provided, prepare an expense forecast for 20X1 using the template below:



Spending during January- June 20X1 (6 months)
• Fixed expense items: $210,000
• Variable expense items: $1,200,000
• One time expense: $50,000 of fixed expense money was spent on preparing for a Joint Commission survey
Procedures preformed during January- June 20X1 (6 months)
• Your department has performed 20,000 procedures during the first six months



On November 1,20X1, two new procedure technicians will begin work. The salary and fringe benefit costs for each is $96,000/year.



Description Fixed Variable Total
Year to Date Expense for Jan-Jun 20x1
Adjustments
Deduct "one Time" expenses
Adjusted Total
Annualization for 20X1
Divide by days/months/etc. 6
Multiply by days/months/etc. 12
Divide by volume 20,000
Multiply by volume 40,000
Total Annualized Amounts
Adjustments
Add back "One Time" expenses
Salaries (+/-)
Expense Forecast as of 12/31/X1



Calculat