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1. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows: Number of visits Wages and
1. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows: Number of visits Wages and benefits Medical supplies Rent Utilities Administrative supplies 24,000 $720,000 $270,000 $144,000 $24,000 $18,000 Assume that all costs are fixed except medical supplies and administrative supplies costs which are variable. a. What is the clinic underlying cost structure? b. What are the clinic's expected total costs at 24,000 visits? c. What are the clinic's estimated total cost at 30,000 visits? d. What are the clinic's estimated total cost at 18,000 visits? e. What is the average cost per visit at 18,000 visits? f. What is the average cost per visit at 24,000 visits? 8. What is the average cost per visit at 30,000 visits? h. How would you describe the relationship between volume (number of visits) and average cost per visit
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