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 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 make an annual profit of $150,000?

• A. $140
• B. $125
• C. $75
• D. $50
• E. $90