Q. Search Q Search Week 1 Homework Narrative Screen Shot 2020-01-27 at 5.17.50 PM Q. Search Amanda and Bartholomew, a lovely couple with degrees in medicine, own and operate a demonology clinic. The clinic is open for business Monday through Friday from 8:00 a.m. to 5:00 p.m. The thing is, many of their patients work for government or private sector and they have to take sick leaves to see the doctors during those days. Since most people do not work in weekends, Amanda and Bartholomew think they could attract many more patients if they open the clinic for 1 1. On Saturdays, Amanda teaches biochemistry in a local university for adult students, which business on Saturdays as well. This is because these patients could save some of their sick leaves. she needs to give up if they open the clinic an extra day. She makes $5,000 per month for Is this a wise economic decision? Please help this lovely couple with their economic decision. those lectures. Assume that each month has 4 weeks or 20 workdays (excluding weekends). Calculate the 12. Capital (such as the medical equipment, the HVAC system, and the fumiture) lose value marginal costs and benefits for the entire month (4 Saturdays). Amanda and Bartholomew are at an estimated rate of $200 per business day (this is called depreciation). planning to open the clinic on Saturdays only for the next 5 years. This is because they want to 13. If they open the clinic for business on Saturdays, their total monthly revenue will increase make some extra cash to make the payments to the bank less burdensome (see below). Here are by $35,000 (revenue is the money received from patients before subtracting out the costs). some pertinent facts (these are the only facts to consider. Please do not confuse Amanda and .. . Screen Shot 2020-01-28 at 10.02.03 PM Bartholomew with any other extraneous information): Q Q Search 1. Because of its prime location, the monthly rent on the clinic is $7,000, regardless of the number of days the clinic is open for business. This rent will remain constant for the next five years. ncorrect Question 2 0/1 pts 2. They pay $4.000 per month to a local bank for a loan they took out a while back to buy some state-of-the-art medical equipment. This payment will continue for the next five years. Consider the information in the file named HW 1 3. They pay a fixed monthly insurance premium of $3,000 for theft, fire, and things like that. Amanda and Bartholomew (Canvas Folder: 4. They pay a base liability (malpractice) insurance premium of $5,000 per month that excludes weekend practices. Files/Homework Files/Homework 1 Files). For each Saturday that the clinic is open for business, the couple have to pay an additional The implicit monthly fixed cost with respect to the $600 in liability insurance premium. Instead of running their own medical business, Amanda and Bartholomew could work for couple's decision to open the clinic on Saturdays is a well-known and well-respected health management organization (HMO) for a combined 70800.00 dollars. monthly salary of $65,000 (yes, you read it right). 7. Five years ago, they installed new heating, ventilation, and air-conditioning (HVAC) system with special filters for $15,000. Now it is worth only $3,000 in the second-hand Recall: The fixed cost will be incurred on a monthly basis market. whether or not the couple open the clinic on Saturdays. 8. Two years ago, they bought new furniture for the waiting room for $12,000. It is now worth only $5,000 9. For each day that the clinic is open for business, they have to pay $7,000 in wages and Answer 1: salaries to their staff (the receptionist and technicians). 10. The cost of electricity and natural gas for cooling and heating, as well as the water bill is 70800.00 $200 per workday