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Assume a primary care clinic has the following in costs: Wages and benefits = $280,000 Rent =...

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Finance

Assume a primary care clinic has the following in costs:

Wages and benefits = $280,000

Rent = $10,000 annually

Depreciation = $24,000

Utilities = $3,000

Medical supplies = $50,000

Administrative supplies = $8,000

Visits = 15,000

Assume all costs are fixed except medicalsupplies.

What is the clinic’s underlying cost structure?______________

What are the clinic’s total expected costs? _______________

What would the estimated costs be if visits were 5% overexpected? ___________

What if they were 8% under expected? ____________

What is the average cost per visit for:

15,000 visits = ______________

5% above = _______________

8% below = ___________________

What price do services need to be set at for the clinic to breakeven at 15,000 visits? _________________

Answer & Explanation Solved by verified expert
3.8 Ratings (444 Votes)
Assuming like rent all other costs are also Annual Cost Name Cost Type Cost for Normal If 5 Over Expected if 8 under Expected Wages Benefits Fixed 28000000 28000000 28000000 Rent    See Answer
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