Reference no: EM132504292
Question - 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.
Required -
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?
D. What is the average cost per visit at $7,500, 10,000 and 12,500?
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