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Bend-Me-Straight (BMS) is considering a capitated agreement with a compre- hensive care for joint replacement program (CJR) that would provide $200 per patient per

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Bend-Me-Straight (BMS) is considering a capitated agreement with a compre- hensive care for joint replacement program (CJR) that would provide $200 per patient per year for 100 patients. If BMS wants to make a $2,000 profit on the program and if fixed costs are $5,000, BMS must keep variable costs per patient under what amount in order to make the desired profit?

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