A health insurance company charges policyholders a $1250 annual premium

A health insurance company charges policyholders a $1250 annual premium for health insurance for hospitalization.  The company estimates that each time a patient is hospitalized costs the company $2500.  Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice.  

(a)  Find the insurance company’s expected profit per policyholder.  

(b)  What is the expected profit if they enroll 80,000 policyholders?