A doctor currently makes $175,000 in profit: $425,000 in revenue and $250,000 in cost. The physician's time spent is on 75% patient care, 15% billing, and 10% administrative services. If a doctor outsources his billing, he can spent the 15% of the time he spent billing seeing patients. How much extra revenue does he earn if billing is outsourced?
The correct answer is:
($425,000 x 15%)/(75%)=$85,000.
I simply don't understand why you would divide the 75%. Can anyone enlighten me? Thanks.