1: which cost listed in the question are opportunity cost? will these affect your decision about wheather or not to offer behavioral health?
2: Which of the cost listed in the question are sunk cost?
15 points The COO is impressed at the work you've done so far and wants to get you involved in a new project the clinic is considering . The clinic board has noticed the community has an acute need for behavioral health services and they have requested that the clinic management team do an analysis of whether offering these services would be feasible. The COO is particularly interested in getting your understanding of how the clinic's costs would change if it began offering behavioral health services. You collect the following information about how the coo proposes to provide behaviorat health: The strategy to provide behavioral health services would involve: - Hiring a licensed clinical social worker and a community outreach worken. The expense for adding both these positions would be $110,000 - Services would be provided in two rooms in the existing clinic building. These rooms were originally in an unfinished part of the clinic but they were framed out and HVAC was added 3 years ago at a cost of $45,000. The rooms are currently rented to United Way, who uses them for community outreach. United Way is currently paying the clinic $50 per month in rent for the privilege of using the rooms. If the clinic were to offer behavioral health services, the arrangement with United Way would be discontinued. - The clinical social worker would need a computer for charting. The elinic has a spare computer purchased two vears ago for $750. This computer would be suitable but the clinic would need to invest $400 to purchase a behavioral-health add-on to their current medical record system 15 points The COO is impressed at the work you've done so far and wants to get you involved in a new project the clinic is considering . The clinic board has noticed the community has an acute need for behavioral health services and they have requested that the clinic management team do an analysis of whether offering these services would be feasible. The COO is particularly interested in getting your understanding of how the clinic's costs would change if it began offering behavioral health services. You collect the following information about how the coo proposes to provide behaviorat health: The strategy to provide behavioral health services would involve: - Hiring a licensed clinical social worker and a community outreach worken. The expense for adding both these positions would be $110,000 - Services would be provided in two rooms in the existing clinic building. These rooms were originally in an unfinished part of the clinic but they were framed out and HVAC was added 3 years ago at a cost of $45,000. The rooms are currently rented to United Way, who uses them for community outreach. United Way is currently paying the clinic $50 per month in rent for the privilege of using the rooms. If the clinic were to offer behavioral health services, the arrangement with United Way would be discontinued. - The clinical social worker would need a computer for charting. The elinic has a spare computer purchased two vears ago for $750. This computer would be suitable but the clinic would need to invest $400 to purchase a behavioral-health add-on to their current medical record system
