Question: The following data relate to two activity levels of an out-patient department in a hospital: Number of consultations by patients 4,500 5,750 Overheads 269,750 289,125

The following data relate to two activity levels of an out-patient department in a hospital:

Number of consultations by patients 4,500 5,750 Overheads £269,750 £289,125 Fixed overheads are not affected by the number of consultations per period. The variable cost per consultation:

(A) is approximately £15.50

(B) is approximately £44.44

(C) is approximately £59.94

(D) cannot be calculated without more information.

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