Question: Type or paste question here Cost Classification Based on Behavior (Relation to Volume) The management of ABC Outpatient Clinic projects to serve 2,000 patient visits
Type or paste question here
Cost Classification Based on Behavior (Relation to Volume) The management of ABC Outpatient Clinic projects to serve 2,000 patient visits next year and expects to pay the following operating costs: @ 2,000 pa- tient visits behavior 2500 patients Wages & benefits $ 130,000 fixed Rent 12,000 fixed Utilities 3,000 fixed Supplies 20,000 variable Total $ 165,000 Management considers all costs as fixed except supplies, which are variable. Required: 1. Calculate the total fixed cost. 2. Calculate the total variable cost. 3. Calculate the variable cost rate per patient visit. 4. What is the clinic's underlying cost structure (cost model)? 5. What is the clinic's estimated total costs at 2,500 patient visits? 6. At 2,500 patient visits, what is the average cost per visit? 7. At 2,000 patient visits, what is the average cost per visit? total variable cost = pro- jected volume
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