1. Eric runs a chiropractic center in Florida. The annual fixed costs for operating Chiro-Care clinic is $222,000. The variable cost per patient treated is $55. The price billed for each visit is $136. Currently, he has around 2500 visits a year.

a) Is he making profit? b) He doesn't think he can increase demand, so he is thinking about a cost-cutting measure for his variable costs. What would his variable costs need to be in order for him to break even at 2500 visits a year?