Problem:
Smile Alot Dental (SAD) provides three basic service appointments; Cleaning, Check-up, and Full service. Total annual costs average $840,000. An RVU analysis indicates the following: Annual Average Appointments RVUs/appointment Cleaning 2,500 12 Check-ups 5,000 10 Full Service 2,500 16
Required:
Question 1: Using RVU methodology, what is the cost for each type of appointment?
Question 2: If the goal is a 25% profit margin, what should be the price for each type of appointment?
Note: Show supporting computations in good form.