THE PROBLEM IN THE TEXT HAS NUMBERS THAT ARE INCORRECTLY ALIGNED!  USE THE TEXT BELOW TO SOLVE THIS PROBLEM.

EXCEL PROBLEM 
 

1. The Kramer Cardiac Center currently treats three type of patients. A managed care organization has approached Kramer to provide services to a fourth type of patient for a flat price of $3,000. Kramer has a standard costing system that includes Standard Treatment Protocols, Service Units, and Standard Cost Profiles. (The standard costing system is maintained with Microsoft® Excel. The standard treatment protocols are in the file "STP.XLS" and the standard cost profiles for all service units are in the file "SCP.XLS". Both files are located below.)
 

a) Using the STP.XLS file, develop a standard treatment protocol for patient type 4 as follows: 

                               1                 5 

                               2               26 

                               3               18 

 
The file has a predefined function for adding new patient types. Under "Tools" choose "New STP" and follow the prompts. The names of the worksheets represent the patient type designation. 

b) How much is the new type of patient expected to cost? 

c) Should they agree to accept the MCO’s offer of $3,000? 

d) Realizing that SU #2 has a mistake, use the SCP.XLS file to change the cost of direct materials to $31.90.  What is the new "full" cost of patient type 4. What is the new marginal cost of patient type 4 and should Kramer accept $3,000? 

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• Scp.xls

• Stp.xls