Three Level Revenue Forecast Create the required table in an Excel document and submit the assignment via the link provided below. You must calculate the revenue forecasts at each level (and show your work), but you do not need to create the line chart shown in Figure 17-5 (p. 209).

Three Level Revenue Forecast Create the required table in an Excel document and submit the assignment via the link provided below. You must calculate the revenue forecasts at each level (and show your work), but you do not need to create the line chart shown in Figure 17-5 (p. 209). Three eye-ear-nose-and-throat physicians decide to hire an experienced audiologist in order to add a new service line to their practice.* They ask the practice manager to prepare a three-level volume forecast as a first step in their decision-making. Assumptions: for the base level (most likely) revenue forecast, assume $200 per procedure times 4 procedures per day times 5 days equals 20 procedures per week times 50 weeks per year equals 1,000 potential procedures per year. For the best case revenue forecast, assume an increase in volume of one procedure per day average, for an annual increase of 250 procedures (5 days per week times 50 weeks equals 250). (The best case is if the practice gains a particular managed care contract.) For the worst case revenue forecast, assume a decrease in volume of 2 procedures per day average, for an annual decrease of 500 procedures. (The worst case is if the practice loses a major payer.) *Audiologists were designated as “eligible for physician and other prescriber incentives” as discussed elsewhere. Thus the new service line was a logical move. Required Using the above assumptions, prepare a three-level forecast similar to the example in Figure 17–5 and document your calculations. Assignment Exercise 17–3: Target Operating Income Acme Medical Supply Company desires a target operating income amount of $100,000, with assumption inputs as follows: • Desired (target) operating income amount 5 $100,000 • Unit price for sales 5 $80 • Variable cost per unit 5 $60 • Total fixed cost 5 $60,000 Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals. Assignment 18-4 Pareto rules Review the chapter text about the Pareto rule and examine Figure 18–4. Note that the text says Pareto diagrams are often drawn to reflect before and after results. Assume that Figure 18–4 is the before diagram for the Billing department. Further assume that the after results are as follows: Activity Code Number Process Denied Bills PDB 12 Review with Supervisor RWS 10 Locate Documentation LD 6 Copy Documentation CD 5 33 Redo the Pareto diagram with the after results. (Use Figure 18-4 as a guide.) 2. Comment on the before and after results for the Billing department.