Reference no: EM132781846

You have been hired as the manager for a new clinical lab company in the Atlanta metropolitan area. The lab is a nonprofit that serves low-income patients in the downtown area. The lab is in the process of setting its fees-for-services on individual services. The clinic director has estimated fixed costs of $436,000, a volume of 18,500 tests, and variable cost rate of $19.

She has asked you to prepare a PowerPoint presentation for the lab's board of directors, explaining variable and fixed costs for healthcare services in the lab. Prepare a 7 to 10 slide PowerPoint that explains the following items.

Question 1: List and explain fixed costs that the lab will have.

Question 2: List and explain variable costs per visit that the lab will encounter.

Question 3: The board will need to be aware that pricing may change if estimated costs are not accurate. If fixed costs end up being $397,500, how will the price breakeven change?

Question 4: Explain how these pricing or volume changes may affect the lab.