• Harmony Health Clinics are reviewing their patient care costs to ensure sustainability and effective resource allocation.
• Data Collected:
  • January: Total Costs: $1,100,000, Patient Visits: 22,000
  • December: Total Costs: $1,500,000, Patient Visits: 30,000
• Instructions:
  • Determine the variable cost per patient visit and fixed costs using the High-Low Method.
  • Develop a cost formula.
  • Predict costs if patient visits rise to 35,000.
  • Discuss how varying patient volumes could affect clinic resources and budgeting.