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Question - Your primary care clinic had these costs during fiscal year 2015-
Type of cost
Dollars
Rent
$26,000
Administrator
$63,000
Bookkeeper - billing clerk
$48,000
PCPs (per visit)
$55
Malpractice insurance (per visit)
$6
Disposable supplies per visit
$3
Required -
a) What is Variable Cost per Unit?
b) You are actually paid $140 per PCP visit. What is your Break-even quantity?
c) Last year, you provided 2,500 PCP visits. What was Total Revenue? What was Total Costs?
d) Please express your surplus or loss as a percentage of Total Revenue-this is your operating margin.
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