A Doc - in - a - Box office, a group of family practitioners, is looking for a new location to expand their services. Three locations are identified with fixed costs. Because of diverse population profiles in each location, patient visits, variable costs, and revenues vary in each location as shown in Table EX 4.2.
a. Determine the location based on total cost.
b. Determine the location based on revenue.
c. Determine the location based on profit.
d. Determine the sensitivity of the decision in ( c )for varying values of visits. (Hint: Draw a graph of cost, revenue, and profit.)