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micro economics problem, help please?

I would appreciate anyone who could solve this problem for me.

Improved Access (IA), a local charity devoted to helping inner city residents, has opened a downtown, drop-in medical clinic. The space rents for $3,500 a month (including utilities), and equipment leases cost $45,000 per year. IA has hired two nurse practitioners at $7,200 a month each, and a receptionist,

whose monthly wage is $3,300. Benefit costs for all staff are $36,600 per year. Office costs, including telephone rentals are $1,500 per month. IA staff

are paid on salary, which is not dependent upon the volume of patients seen.

Clinic supplies are $40 per patient, and the clinic sees 975 patients a month.

Use the above information to calculate the following monthly costs for IA’s clinic:

Total Fixed Cost (TFC):

Total Variable Cost (TVC):

Total Cost (TC):

Average Fixed Cost (AFC):

Average Variable Cost (AVC):

Average Total Cost (ATC):

1 Answer

  • tlc289
    Lv 4
    7 years ago
    Favorite Answer

    those NPs need to look elsewhere for better income. if each NP bills out $500K/year, they're not making very much, even with their salary being volume-adjusted. they should be making at least $130/year. i'd get rid of benefits for staff, too. let the NPs treat them for free. sorry to not answer question but that salary just caught my eye.

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