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Sales Mix Decision

Dr. Massy, who specializes in internal medicine, wants to analyze his sales mix to find out how the time of his physician assistant, Consuela Ortiz, can be used to generate the highest operating income.
Ortiz sees patients in Dr. Massy’s office, consults with patients over the telephone, and conducts one daily weight-loss support group attended by up to 50 patients.

1. Determine the best sales mix. Rank the services offered in order of their profitability.
2. Based on the ranking in I, 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 believes the ranking is incorrect. He 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. Manager Insight: Which ranking would you recommend? What additional amount of total contribution margin would be generated if your recommendation is accepted?
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Understanding Practical Business and Organizational Research
Using the virtual library, locate two (2) research articles published within the last five (5) years. One article should deal with measuring performance and one article should relate to incremental analysis.
Choose one of the two articles to write a one-to-two-page introduction to the article. Include the following sections and include no opinions, judgments, or beliefs about the study. Only present the facts.

• Topic – State the broad organizational or field of study topic and establish the overall context for the study.
• Problem or Opportunity – Describe the problem or opportunity that the researcher was trying to address.

• Purpose of the Study – Discuss the intent of the study and list any research questions or hypotheses that were used.
• Research Approach and Design – Describe the overall research approach and information that you find related to the research design. Research design might include such things as the setting (field, laboratory, etc), the type of data that was collected, the sample and sample selection, the way data was prepared, analyzed, or presented, for example.

• Audience – Identify the individual or groups that might be interested in the findings of the study.
• Summary – Present the main points that you have covered in your paper; introduce no new information or concepts.
Your paper should meet the following requirements

• Use academic writing style, clear and concise language, and well-developed paragraphs (minimum of three sentences required to develop a paragraph)
• Ensure graduate APA formatting standards
• Be 1-2 pages in length
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