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You have signed a contract with a new employer in the area to provide 150 pre-employment physicals. Your governing board wants the business from this
You have signed a contract with a new employer in the area to provide 150 pre-employment physicals. Your governing board wants the business from this employer because of the potential business growth and the value of the relationship. The board has authorized you to negotiate a price with the company but has insisted that a profit of $1,200 be made on each physical. The employer has suggested $1,500 for each. Given the following data, what is the lowest price per physical that you would be willing to accept?
\begin{tabular}{|l|r|} \hline & \multicolumn{1}{|c|}{ Current Operations } \\ \hline Number of Current Cases & 5,000 \\ \hline Variable Costs & $2,000,000 \\ \hline Fixed Costs & $18,000,000 \\ \hline Total Costs & $20,000,000 \\ \hline \end{tabular}
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