Breakeven. Zack Millman Clinic is seeking to provide sports-related health care services to high schools in the area. Zack Millman estimates that the cost to provide care would be $2,500 plus $15 per athlete per month on a nine-month basis. The high schools jointly offered to pay the clinic $15,000 for a nine-month contract to cover 85 athletes.

a. If the clinic accepts this bid and contracts with the high schools, will it earn a profit or loss for the year? How much?

b. What would the contract price have to be for Millman to break even?

c. If Zack Millman Clinic wants to earn $8,000 in profit for the year, and the school system preferred to pay on a per athlete per month basis, what would the price have to be?