XYZ clinic has recently expanded its services to include a facility solely dedicated to COVID-19 testing. Jean
Question:
XYZ clinic has recently expanded its services to include a facility solely dedicated to COVID-19 testing. Jean Grey, the clinic manager, has been tasked with estimating the annual costs for the clinic. To do so effectively, Jean must consider the $30 individual costs for COVID-19 testing supplies based on the projected number of patients that may require testing each month. The table below contains the projected variable cost data for the entire year. Using the information, calculate the monthly variable costs of providing COVID-19 testing.
Month
Anticipated Volume
Calculation (show how you arrived at the answer here)
Variable Costs ($)
January
100
February
105
March
110
April
112
May
110
June
114
July
120
August
121
September
115
October
131
November
125
December
126
Totals
?
?
What are the Total Variable Costs for the entire year? Show how you arrived at your answer.
Given that the new facility will also require fixed costs in rent, equipment, salaries and wages of $150,000, what are the total costs for the entire year? Show how you arrived at your answer.
Given the total costs found in Question 2, what is the average cost per test for the entire year? Show how you arrived at your answer.
Expert Answer:
XYZ Clinic COVID19 Testing Cost Analysis 1 Monthly Variable Costs The variable cost is the cost per ... View the full answer
Business Statistics For Contemporary Decision Making
ISBN: 978-1118749647
8th edition
Authors: Black Ken
