Question
Hyde Park Clinic has the following cost structure: Fixed Costs= $900,000 They are expected to have 15,000 visits this year. When analyzing the clinic revenue
Hyde Park Clinic has the following cost structure: Fixed Costs= $900,000 They are expected to have 15,000 visits this year. When analyzing the clinic revenue you determine that each patient visit brings in, on average, $150.
Total costs = Fixed Costs + Variable costs Total costs = Fixed Costs + (variable costs x volume) Total Revenue - Variable Costs = Contribution Margin Operating Margin = Contribution Margin - Fixed Costs Show all numbers in the proper equation and answer. a
. What are the total costs for this clinic if they see the expected visit volume?
b. Calculate the Contribution margin
c. Is their a profit for this clinic? What is that $$ value?
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