Question

1. Your director has commissioned you to put together projections for a new ambulatory urgent care center. Your financial projections for the first year of operations are as follows:
Number of Visits	10,000	Utilities	$3,500
Wages and Benefits	$420,000	Medical Supplies	$75,000
Rent	$8,000	Administrative Supplies	$11,000
Depreciation	$30,000
Assume that all costs are fixed except supplies costs, which are variable.
a. What is the clinic’s underlying cost structure?
Insert your response here.
b. What are the clinics expected total cost?
Insert your response here.
c. What are the clinic’s estimated total cost at 5,500 visits? At 10,500 visits?
Insert your response here.
d. What is the average cost per visit at 7,000, 10,000 and 12,000 visits?
Insert your response here.
2. North Central Bronx Hospital has estimated the following costs for its inpatient services: Fixed Costs $ 12,000,000       Variable Cost Per Inpatient day $300 North Central Bronx Hospital expects to have 18,000 inpatient days next year.
What is the hospital’s underlying cost structure?
Insert your response here.
What are the hospitals expected total cost?
Insert your response here.
What is the hospital’s estimated total cost at 19,000 inpatient days? At 25,000 patient days?
Insert your response here.
What is the average cost per patient day at 19,000, 25,000, and 30,000 patient days?
Insert your response here.

Answer 1

Q1

1.
=420000+8000+30000+3500+11000+75000/10000*Number of visits
=472500+7.50*Number of visits

2.
=472500+7.50*10000=547500

3.
=472500+7.50*5500=513750

4.
=472500+7.50*10500=551250

Q2

1.

=12000000+300*inpatient days

2.
=12000000+300*18000=17400000

3.
=12000000+300*19000=17700000

4.
=12000000+300*25000=19500000

5.
=12000000/19000+300=931.578947368421

6.
=12000000/25000+300=780

7.
=12000000/30000+300=700