1. Brooklyn Diagnostic Center has the following cost structure: Fixed Cost: $725,000 Variable Cost Per Procedure: $15 Furthermore, assume that the center expects to perform 2,500 procedures in the coming year. A. What is the groups underlying cost structure?
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B. What are the groups expected total cost?
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C. What are the groupss estimated total costs at 3,500 procedures? At 5,000 procedures?
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D. What is the average cost per procedure at 4,000, 5,500 and 10,000 procedures?
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2. Your director has commissioned you to put together projections for a new ambulatory urgent care center. Your financial projections for the first year of operations are as follows:
Number of Visits	10,000	Utilities	$3,500
Wages and Benefits	$420,000	Medical Supplies	$75,000
Rent	$8,000	Administrative Supplies	$11,000
Depreciation	$30,000
Assume that all costs are fixed except supplies costs, which are variable.
a. What is the clinics underlying cost structure?
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b. What are the clinics expected total cost?
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c. What are the clinics estimated total cost at 5,500 visits? At 10,500 visits?
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d. What is the average cost per visit at 7,000, 10,000 and 12,000 visits?
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North Central Bronx Hospital has estimated the following costs for its inpatient services: Fixed Costs $ 12,000,000 Variable Cost Per Inpatient day $300 North Central Bronx Hospital expects to have 18,000 inpatient days next year.
What is the hospitals underlying cost structure?
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What are the hospitals expected total cost?
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What is the hospitals estimated total cost at 19,000 inpatient days? At 25,000 patient days?
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What is the average cost per patient day at 19,000, 25,000, and 30,000 patient days?
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