Total Fixed costs = Rent + Utilities + Secretary’s wage and benefits

= 30 000 + 4000 + 20 000

= P54000
Fixed cost per doctor = 54000/4 = P13500

a. If Dr. A is a general pediatrician and, on the average, uses up medical supplies

amounting to P60 per patient. How many patients should she have per month if she
charges P600 per patient and would like to earn at least five times her monthly clinic
expenses?

Given:
Fixed cost per doctor = 13500
Variable cost per patient = 60
Revenue per patient = 600

Let x = number of patients seen in 1 month

Total variable cost = 60x

Total cost = 60x + 13500

Total revenue = 600x

600x = 5(60x + 13500)

x= 45 patients

b. Dr. B is a procedural specialist and only follows up patients at the clinic. He believes
that he earns substantially more from in-patients than clinic consultations - and will be
satisfied to have his clinic revenues just meet his share of expenses. If he usually sees
25 cases a month in the clinic, how much should each consult be charged?

Given:
Fixed cost per doctor = 13500

Let x = charge per consult

25x = 13500
x = P540 per patient

c. Dr. C is a mental health specialist and spends more time with her patients. She
charges P2,500 per consultation. How many patient visits should she entertain per
month if she expects to earn at least ten times what she spends for the clinic?
Given:
Fixed cost per doctor = 13500
Revenue per patient = 2500

Let x = number of patients

2500x = 10(13500)
x = 51 patients

d. Dr. D is a public health practitioner who provides screening tests for selected
patients. The test costs P300 per patient. The government pays his salary, and will pay
for the clinic and test expenses. If he expects to test 500 patients a month, how much
subsidy, exclusive of salary, should he receive on a monthly basis?

Given:
Fixed cost per doctor = 13500
Variable cost = 300 test fees x 500 patients = 150000

Subsidy = Fixed cost + variable cost = 163500

X = P163500