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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 make an annual profit of $150,000?
A. $140
B. $125
C. $75
D. $50
E. $90
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