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Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per visit of $100. For this clinic (within the
Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per visit of $100. For this clinic (within the relevant range), which of the following statements is most correct?
Yes, the cost of the insurance policy is $110 lower than the expected healthcare cost.
No, the cost of the insurance policy is $900 higher than the expected healthcare cost.
Yes, the cost of the insurance policy is $900 lower than the expected health care cost.
No, the cost of the insurance policy is $110 higher than the expected healthcare cost.
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