Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant.

Sure Care estimates that the cost of providing preventative and curative care for the 300 employees and their families will be $36,000 per month.

The manufacturing company offered Sure Care a premium bid of $200 per employee per month.

If Sure Care accepts this bid and contracts with the manufacturing firm, will Sure Care earn a profit or loss for the year? How much?

Describe the steps you used to solve this question.