Question
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Number of visits 10,000 Utilities $2,500
You are considering starting a walk-in clinic. Your financial projections for the first
year of operations are as follows:
Number of visits 10,000 Utilities $2,500
Wages and benefits $220,000 Medical supplies $50,000
Rent $5,000 Administrative supplies $10,000
Depreciation $30,000
Assume that all costs are fixed except supplies costs, which are variable.
a. What is the clinic's underlaying cost stracture?
b. what are the clinic's expected total costs?
c. what are the clinic's estimated total costs at 7,500 visits? At 12,500 vists ?
d. what is the avarage cost per visit at 7,500, 10,000, and 12,500 visits ?
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