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3. United Healthcare currently only allows its patients to receive total knee replacements in an inpatient setting. For each total knee replacement, United Healthcare is

3. United Healthcare currently only allows its patients to receive total knee replacements in an inpatient setting. For each total knee replacement, United Healthcare is contracted to pay a flat $30,000 case-rate. The costs of the inpatient encounter are as follow: Fixed Direct Cost Fixed Indirect Cost Variable Direct Cost Variable Indirect Cost $4,500 $6,600 $8,125 $1,150 a. What is the operating income (profit) and margin for each United Healthcare total knee replacement inpatient case?

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