You are considering starting a walk in clinic. Your financial projections for the first year of operations are as follows:

Number

of visits $20,000 Utilities $4,500 Wages and benefits $ 220,000, medical

supplies $55,000, rent $10,000, administrative supplies $15,000. Depreciation

$40,000.

Assume

that all costs are fixed except supplies cost, which are variable.

A. What is the clinics underlying cost structure?

B What are the clinics expected total cost ?

C. What are he clinics estimated total cost

at $7,500 visits? at $12,500 visits?

D. What is the average cost per visit at

$7,500, 10,000 and 12,500?