1. 2 Assume that a cardiologist group practice has the following cost structure: Fixed Cost: $500,000 Variable Cost...

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1. 2 Assume that a cardiologistgroup practice has the following cost structure:
Fixed Cost: $500,000        Variable Cost PerProcedure: $25
Furthermore, assume that the groupexpects to perform 7,500 procedures in the coming year.
A. What is the group’sunderlying cost structure?
    B. Whatare the groups expected total cost?
C. What are the groups'estimated total costs at 5,000 procedures? At 10,000procedures?
D. What is the averagecost per procedure at 5,000, 7,500 and 10,000procedures?
You are considering starting a walk-in clinic. Your financialprojections 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 arevariable.
What is the clinic’s underlying cost structure?
What are the clinics expected total cost?
What are the clinic’s estimated total cost at 7,500 visits? At12,500 visits?
What is the average cost per visit at 7,500, 10,000 and 12,500visits?

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1. 2 Assume that a cardiologistgroup practice has the following cost structure:Fixed Cost: $500,000 Variable Cost PerProcedure: $25Furthermore, assume that the groupexpects to perform 7,500 procedures in the coming year.A. What is the group’sunderlying cost structure? B. Whatare the groups expected total cost?C. What are the groups'estimated total costs at 5,000 procedures? At 10,000procedures?D. What is the averagecost per procedure at 5,000, 7,500 and 10,000procedures?You are considering starting a walk-in clinic. Your financialprojections for the first year of operations are as follows:Number of Visits10,000 Utilities$2,500Wages and Benefits$220,000Medical Supplies$50,000Rent$5,000Administrative Supplies$10,000Depreciation$30,000Assume that all costs are fixed except supplies costs, which arevariable.What is the clinic’s underlying cost structure?What are the clinics expected total cost?What are the clinic’s estimated total cost at 7,500 visits? At12,500 visits?What is the average cost per visit at 7,500, 10,000 and 12,500visits?

You are considering starting a walk-in clinic. Your financialprojections 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 arevariable.
What is the clinic’s underlying cost structure?

What are the clinics expected total cost?

What are the clinic’s estimated total cost at 7,500 visits? At12,500 visits?

What is the average cost per visit at 7,500, 10,000 and 12,500visits?