You are considering starting a walk-in clinic. Your ?nancial projections for the ?rst year of operations are as follows: Number of visits 10,000 Utilities $2,500Wages and benefits $220,000 Medical supplies $50,000Rent $5,000 Administrative supplies $10,000Depreciation $30,000 Assume that all costs are ?xed except supplies costs, which are variable.
a. What is the clinic's underlying cost structure?
b. What are the clinic's expected total costs?
c. What are the clinic's estimated total costs at 7,500 visits? At 12,500 visits?
d. What is the average cost per visit at 7,500, 10,000, and 12,500 visits?