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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 |
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?
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