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The May Clinic Rents a Small Office in Columbia

Question 14

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The May Clinic rents a small office in Columbia. May pays the building owner a rent of $12,000 a month, which includes all utilities. It has signed a three-year lease. May hires a general practice physician at $300 an hour, a nurse at $90 an hour, and a secretary at $60 an hour. May assumes that each patient uses $60 in supplies. In September, the clinic was open for 400 hours, during which all personnel were available at all times to staff the clinic. During that time, 6,000 patients were seen. What were May's fixed, variable, and total costs for the month?.

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Fixed costs = $12,000 a month for rent a...

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