Suppose that exhibit 12.4 is your practice’s marketing forecast.

Discussion Questions

• By law, you must charge everyone the same price. What do you charge?

• Your costs equal $100,000 plus $20 per visit. What are your revenues, costs, and profits?

• If you could charge the two groups different prices, what prices would you charge each group?

• What would your revenues, costs, and profits be?

• Would this scenario be ethical?

• How could you identify the two groups? (You cannot do income surveys of your patients.)

Transcribed Image Text:

Price Marketing $35.75 Forecast $35.25 $34.75 $34.25 EXHIBIT 12.4 Low-Income High-Income Clients Clients 14,250 14,750 2,125 2,375 2,625 2,875 15,250 15,750 Total 16,375 17,125 17,875 18,625