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Assume that a radiologist group practice has the following cost structure: Fixed costs $ 4 9 5 , 8 1 7 Variable cost per procedure

Assume that a radiologist group practice has the following cost structure:
Fixed costs $495,817
Variable cost per procedure $22
Charge (revenue) per procedure $108
Furthermore, assume that the group expects to perform 7,932 procedures in the coming year. Also assume that the practice contracts with one HMO, and the plan proposes a 21 percent discount from charges. What is the group's contribution margin per unit?

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