5. Cost Analysis

The Finance and Accounting department is projecting rough budget for the healthcare program. The program will have fixed costs of $200,000 in the first year, $300,000 in the second year, 400,000 in the third year, and 450,000 in the fourth year. The variable costs will be $400 per client. The program will serve 300 clients in the first year, 350 clients in the second year, 400 clients in the third year, and 420 clients in the fourth year. Please find the marginal cost for the fourth year.