Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates the population served will average two visits per year. 

What is the clinic's contribution margin on the contract per visit? 

What is the contribution margin per member?

Answer rating: 100% (QA)

To calculate the clinics contribution margin on the contract per visit we need to dete... View the full answer