+ 1. Appalachian Dental Associates, PLC (ADA) is considering a contract from the App State Student Health Services department to provide dental services for the 20,000 App State students. The App State Student Health Services Department has done a thorough records scan and provided ADA with the following annual utilization information. Service Check up and cleaning Number of services per year 10000 Filling/ cavity repair visits 3000 --- Service Variable Cost $40 $125 Check up and cleaning Filling/cavity repair visits Appalachian Dental Associates Fixed Costs are $150,000 per year. App State Health Services is offering Appalachian Dental Associates a Contract for $4.00 PMPM. (Hint: Make sure you are measuring revenues and costs based on the same time.) Should ADA accept the contract? Why or why not? Make sure to fully justify your answer, including any assumptions you are making. 2. Appalachia Area Clinic provides primary care services. They offer 2 types of services: routine office visits and complex office visits. You have performed a review of last year's financials using the RVU method and have determined the average fully allocated total cost (not including any profit target) for Appalachia Area Clinic to provide each routine office visit is $100 and $175 per complex office visit.