An ophthalmology practice is analyzing it outputs, cost, and prices to determine if changes are needed. The practice provides five types of eye surgery: Lasik, Photorefractive keratectomy, Lens implants, Cataract surgery and Vitrectomy. Current output costs are based on total practice costs of $2,000,000 and the physician’s assessment in 2016 of how much time she devotes to each type of surgery (surgery is performed twice per week or 768 hours per year are devoted to surgery).  

Calculate cost per output given the physician’s time estimate, do current prices cover costs?

Surgery                                     Price               % Time            Quantity               Cost/Output

Lasik                                           $800              30%                  847                   _________

Photorefractive keratectomy          $700              20%                  491                   _________       

Lens implants                            $1,000              25%                  523                   _________

Cataract surgery                           $900              15%                  264                   _________

Vitrectomy                                $1,200              10%                  239                   _________