Question

A primary care clinic’s line-item operating budget shows

Answer 1

Answer:

c) $450,000

Step-by-step explanation:

The calculation of the cost of the walk-in program is shown below:-

Cost of the walk-in program = 1 ÷ 4 × Salaries + 1 ÷ 2 × (Rent + Depreciation) + 1 ÷ 5 × (Utilities)

= 1 ÷ 4 × $1,000,000 + 1 ÷ 2 × ($300,000 + $80000) + 1 ÷ 5 × $50,000

= $250,000 + $190,000 + $10,000

= $450,000

Therefore for computing the cost of the walk-in program we simply applied the above formula.