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Ten physicians have just completed their residencies in internal medicine and are considering opening a group practice. They estimate the practice would have the following
Ten physicians have just completed their residencies in internal medicine and are considering opening a group practice. They estimate the practice would have the following annual cost structure: annual fixed costs = $750,000 and variable cost per visit = $50. If volume in the first year is estimated to be 10,000 visits, what price per visit must be set if the practice wants to achieve accounting breakeven (e.g., profit = $0)?
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