Using the data of Table 6-2, assume that a new health plan has approached you with an opportunity to sign a contract with them that would pay on a fixed-fee schedule. The rate of payment would be $95 per unit and 200 new patient units would result. It is also assumed that the additional 200 new units would increase total cost from

$100,000 to $112,000. This means that the marginal or variable cost per unit is $60. If the present price cannot be changed and will remain at $294.44 as determined in Table 6-3, what will be the effect on the firm’s total profit?

Should this contract be signed?