Problema Solution
Assume that Goodhealth Clinic has fixed costs of $1,000,000 and a total cost forecast of $1,500,000 at a volume of 20,000 patient visits. What is the clinic's variable cost rate?
Answer provided by our tutors
Total cost. 1500000
Less fixed cost. 1000000
Total variable cost 500000
Variable cost per patient=
500000/20000
=25