Determine the best sales mix
Rank the services offered in order of their profitability.
2. Based on the ranking in requirement 1, how much time should Ortiz spend on each service in a day? (Hint: Remember to consider the maximum number of patient billings per day.) What would be the daily total contribution margin generated by Ortiz?
3. Dr. Massy knows that the daily 60-minute meeting of the weight-loss support group has 50 patients and should continue to be offered. If the new ranking for the services is (1) weight-loss support group, (2) phone calls, and (3) office visits, how much time should Ortiz spend on each service in a day? What would be the total contribution margin generated by Ortiz, assuming the weight-loss support group has the maximum number of patient billings?
4. Which ranking would you recommend? What additional amount of total contribution margin would be generated if your recommendation were to be accepted?
