Health Care Finance Cost

label Business & Finance
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Assuming that your fixed costs for a Rehabilitation Center are $125,000 per year. Your average variable expenses come to $25 per procedure.

1. What are the total fixed costs if 10,000 procedures are performed? 2. What would they be if the volume increased to 20,000 procedures?

Mar 29th, 2015

1. total fixed cost (10,000 procedures) = 125,000+25*10,000

                           = 125,000 + 250,000

                           = $ 375,000

2. total fixed cost (20,000 procedures) = 125,000 + 25*20,000

                                                             = 125,000 + 500,000

                                                             = $ 625,000

Mar 29th, 2015

Thank you so much. 

Mar 29th, 2015

welcome

Mar 29th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Mar 29th, 2015
...
Mar 29th, 2015
Jun 27th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer