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# Total, Fixed and Variable Costs

I am having difficulty identifying whether there are any other variable costs other than the clinic supplies. The question specifically states the costs for each month which all appears to be fixed costs, however, there has to be variable costs in order to calculate other costs as required. Please help.

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. IAhas 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):