Question: Part 1 :Bend - Me - Straight ( BMS ) is considering a capitated agreement with a comprehensive care for joint replacement program ( CJR

Part 1:Bend-Me-Straight (BMS) is considering a capitated agreement with a comprehensive care for joint replacement program (CJR) that would provide $200 per patient per year for 100 patients with projected visits of 100(one visit per patient). If BMS wants to make $2,000 profit on the program and if fixed costs are $5,000, BMS must keep variable costs per patient under what amount in order to make the desired profit? Part 2:Using the surcharge method of setting rates, calculate the average rate to break even in your central supply given the following data:Total projected cost of central supply = $900,000Total projected cost of billable supplies =$750,000Average cost per billable supply = $7

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