How many exams must the clinic provide in order to break even?

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  1. MIllbridge Memorial Hospital provides comprehensive physical exams. The charge per exam is $100, while the variable cost per exam is $65. Thirty percent of the patients that come in for exams are private pay. They must pay the full charge. Seventy percent of the patients are covered by an insurance company that has an agreement with the clinic reduces the charge by 20 percent. The clinic has $210,000 in fixed costs per year. How many exams must the clinic provide in order to break even?

 

    • 11 years ago
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