All categories

4 years ago

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:

Business

1 answer:

omeli [17]4 years ago

5 0

Answer:

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.

You might be interested in

Phillips Enterprises Inc. is expected to pay a dividend of $2.60 next year. Dividends are expected to grow at a constant rate of

Sergeu [11.5K]

Answer:

Cost of internal equity =21%

Cost of external Equity =23.29%

Explanation:

Using the constant growth model:

$Po=\frac{D1}{ke-g}$

if ke is made subject of formula then the cost of internal equity ke is calculated as follows:

$ke=\frac{D1}{Po}+g$ = $\frac{2.60}{20}+0.08$ = 21%

If external equity is to be used, that means that the company will have to issue share to get a fresh infection of capital into the company, and is thus likely to face flotation costs. the company will receive a net of $20 minus flotation costs for every share sold.

$Po(1-f)=\frac{D1}{ke-g}$

If ke is made subject of formula then the cost of external equity ke is calculated as follows:

$ke=\frac{D1}{Po(1-f)}+g$ = $\frac{2.60}{20(1-0.15)}+0.08$ = 23.29%

3 0

4 years ago

What is the minimum percentage of signed authorization cards needed by louis, a union organizer, before the national labor relat

ivanzaharov [21]

C 50 percent of all eligible employees

4 0

4 years ago

6 traits a millionaire lives by according to Dave Ramsey

kramer

Hi cletus you look like a fetus

Explanation:

area 51

3 0

3 years ago

Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bill. a. Accord

Sergio039 [100]

Answer:

1 optimal level is the level of trash where AL willingness to compensate Bill is equal to damage cost to bill by trash

2 it can be alleviated

3 yes there is a way by granting property rights to either of the two parties

7 0

3 years ago

Firms using the __________ approach during the decline stage of the product life cycle will gradually reduce marketing expenditu

In-s [12.5K]

Firms using the Harvesting approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing mix.
In business, harvesting approach is a practice to exploit as much profit as possible from a certain company's product before it pulled out from the market. Usually being done because the firms want to replace the product with a newer one.

6 0

3 years ago