Carrboro Community Clinic currently provides 1,500 patient visits per month. At this level of activity, it...

Transcribed Image Text:

Carrboro Community Clinic currently provides 1,500 patient visits per month. At this level of activity, it incurs the monthly costs shown below. Resource Cost Nurse practitioners Medical supplies (e.g.. syringes) Other supplies (e.g.. gloves) Utilities Rent Variable $ $ $ Carrboro Clinic has compiled the following additional information: The clinic only hires full-time, salaried nurse practitioners and each works a 20-day month. Medical and other supplies vary directly with patient volume. * Last month the Clinic provided only 1,400 patient visits. The cost of utilities last month was $1,920. Rent will remain at $15,000 per month as long as the number of patient visits does not exceed 5,000. Semi-variable $ $ Use the information above to answer the following four questions: a. Classify the resources above into one of the following categories. Type the name of the resource the appropriate box. Fixed or Step-Fixed 56,000 This is the total monthly cost for all of the nurse practitioners (not each) 7,500 1,500 2,000 15,000 b. Assuming the clinic can charge $60 per visit, construct the monthly breakeven equation for Carrboro Clinic and determine whether the clinic is at least breaking even at the current volume of 1,500 visits (if they are generating a profit, the answer would be yes, they are at least breaking even). You must show your calculations some how (either by typing a formula or using formulas in the cells below. A yes or no answer in the blue box is not sufficient on its own. Breakeven equation Breaking even (Yes/No)?[ c. If the clinic increases volume to 2,500 patient visits per month, what will be the total cost of utilities? Show your work. d. What is the minimum price per visit Carrboro Clinic must charge in order to break even if it can achieve a volume of 2,000 patient visits per month? Show your work. 10 Carrboro Community Clinic currently provides 1,500 patient visits per month. At this level of activity, it incurs the monthly costs shown below. Resource Cost Nurse practitioners Medical supplies (e.g.. syringes) Other supplies (e.g.. gloves) Utilities Rent Variable $ $ $ Carrboro Clinic has compiled the following additional information: The clinic only hires full-time, salaried nurse practitioners and each works a 20-day month. Medical and other supplies vary directly with patient volume. * Last month the Clinic provided only 1,400 patient visits. The cost of utilities last month was $1,920. Rent will remain at $15,000 per month as long as the number of patient visits does not exceed 5,000. Semi-variable $ $ Use the information above to answer the following four questions: a. Classify the resources above into one of the following categories. Type the name of the resource the appropriate box. Fixed or Step-Fixed 56,000 This is the total monthly cost for all of the nurse practitioners (not each) 7,500 1,500 2,000 15,000 b. Assuming the clinic can charge $60 per visit, construct the monthly breakeven equation for Carrboro Clinic and determine whether the clinic is at least breaking even at the current volume of 1,500 visits (if they are generating a profit, the answer would be yes, they are at least breaking even). You must show your calculations some how (either by typing a formula or using formulas in the cells below. A yes or no answer in the blue box is not sufficient on its own. Breakeven equation Breaking even (Yes/No)?[ c. If the clinic increases volume to 2,500 patient visits per month, what will be the total cost of utilities? Show your work. d. What is the minimum price per visit Carrboro Clinic must charge in order to break even if it can achieve a volume of 2,000 patient visits per month? Show your work. 10

Answer rating: 100% (QA)

a Classify the resources into one of the following categories Variable Costs Medical supplies Other ... View the full answer