Dental Professionals, PLC (DP) is considering a contract from the Student Health Services department to provide dental services for 10,000 university students.The health services department has done a thorough records scan and provided DP with the following annual utilization information.

Service Number of services per year

Checkup and cleaning 5,000

Filling and/or Cavity repair visits 1,500

Wisdom Tooth Extractions 100

Crowns 75

Service Variable Cost Per Service

Checkup and Cleaning $25

Filling and/or Cavity repair visits $150

Wisdom Tooth Extractions $750

Crowns $900

Dental Professionals fixed costs are $12,000 per month ($144,000 per year). Health Services is offering Dental Professionals a Contract for $5.25 PMPM.What would the Profit and Loss Statement for Dental Professionals, PLC accepting this contract look like? Should DP accept the contract?Why or why not?

A year has passed, and the university is again looking for dentists to provide care for their students. Assume the new contract with the university would include the same number of enrollees. The dental hygienists atDental Professionals have just renegotiated their contracts so the variable cost for performing a check-up and cleaning has increased to $30.What PMPM should DP demand in a 2023 contract to make a $60,000 annual profit?