Cost Types

Your budget is $10,000,000 (first year start up). This should be illustrated in your work such as $125,000 as a
direct fixed cost for a nurse practitioner (including benefits) for example. Research and cite the actual cost. I
will allow you to have have a reference column on your spreadsheet for this assignment.
You may or may not spend your entire budget.

  1. List and describe your direct cost for the clinic.
  2. List and describe your indirect cost for the clinic.
  3. List and describe your fixed cost for the clinic.
  4. List and describe you variable cost for the clinic.
  5. List and describe your semi-variable cost for the clinic.
    Hints:
  6. Building (lease or buy)
  7. Staffing
  8. Equipment
  9. Supplies
    Calculate contribution margin (CM) and total profit or loss based on one year.
    Expected patient flow: 1000 per month
    Average charge per patient $500
    Fixed Cost = $9,500,000
    Variable cost = $1,000,000
    Profit/Loss =
    Describe the outcome based on your budget in the context of positive or negative.

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