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. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Number of Visits 25,000 Utilities

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

Number of Visits

25,000

Utilities

$4,500

Wages and Benefits

$290,000

Medical Supplies

$45,000

Rent

$10,000

Administrative Supplies

$10,000

Depreciation

$40,000

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

a. What is the clinics underlying cost structure?

b. What are the clinics expected total cost?

c. What are the clinics estimated total cost at 7,500 visits? At 12,500 visits?

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