Instead of the raises stated in Exhibit I.4e, assume that all benefits are 18% and all raises are 4% and calculate the fixed labor budget for January, February, and March. Assume that all other assumptions in the exhibit remain the same. Calculate the Total (Salaries + Benefits) for January-02. Calculate the Total (Salaries + Benefits) for February-02. Calculate the Total (Salaries + Benefits) for March-02.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Instead of the raises stated in Exhibit I.4e, assume that all benefits are 18% and all raises are 4% and calculate the fixed labor budget for January, February, and March. Assume that all other assumptions in the exhibit remain the same.
- Calculate the Total (Salaries + Benefits) for January-02.
- Calculate the Total (Salaries + Benefits) for February-02.
- Calculate the Total (Salaries + Benefits) for March-02.
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Exhibit I-4e Data used to construct ZMG Hospitalist Practice's fixed labor salaries and benefitsa |
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Number of FTEs |
Average Salary |
Base Salary |
Benefit Percent |
Date of Next Raise |
Percent Raise |
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Physician I |
12 |
$200,000 |
$2,400,000 |
15% |
Feb-02 |
5% |
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Physician II |
8 |
$220,000 |
$1,760,000 |
15% |
Jul-02 |
5% |
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Physician Assistant |
1 |
$100,000 |
$100,000 |
20% |
Nov-02 |
5% |
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Nurse Practitioner |
1 |
$100,000 |
$100,000 |
20% |
Nov-02 |
5% |
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Administrative Director |
1 |
$100,000 |
$100,000 |
20% |
Feb-02 |
5% |
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Office Staff I |
1 |
$50,000 |
$50,000 |
25% |
Feb-02 |
5% |
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Office Staff II |
3 |
$30,000 |
$90,000 |
25% |
Jun-02 |
5% |
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a All salaries and wages are paid twice monthly in equal amounts. The 2nd payment is made on the last day of each month. |
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