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 clinicâs underlying cost structure?

A.  Clinic’s underlying cost structure =>  Fixed Cost + Variable Cost * (Volume) Fixed Cost => Rent + Utilities + Wages and Benefits + Depreciation => 5,000 + 2,500 + 220,000 +30,000. Fixed Cost = $257,500

Variable Cost=Medical Supplies + Administrative Supplies= 50,000+10,000.

=$60,000.

B. Clinics Expected Total Cost= Fixed Cost + Variable Cost=$257,500 +$60,000= $317,500.

C. Clinic’s Estimated Total Cost at 7,500 visits= Fixed cost (5,000 + 2,500 + 220,000 +30,000) + Variable cost=(50,000/10,000)*7,500 +(10,000/10,000)*7,500 =$257,500 + 35,500+7,500=$300,500.

D. Average cost per visit at 7,500, 10,000 and 12,500 visits

    i. Average cost per visit at 7,500 = 300,500/7,500=$40.07

    ii. Average cost per visit at 10,000 = 317,500/10,000=$31.75

    iii. Average cost per visit at 12,500=  Fixed cost + Variable cost

             = $257,500 + (5*12,500+1*12,500) =$332,500

             =$332,500/12,500=$26.60

Explanation:

Fixed costs will remain the same irrespective of the number of visit.

Variable costs depend on the number of visit.

idk the answer so dont listen to me but 23

answer; test-retest;