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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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