Problem 5.8

llllll does contribution margin on the contract? How Ib 1. this value compare with the value in Problem 5.3.b? d. What profit gain can be realized if the clinic can lower per member utilization to 1.8 visits? answer 5.8 Triangle Pediatrics currently provides 1,000 visits per year at a price of $50 per The variable cost per (variable cost rate) is s30, and total fixed costs are $15,000. The business manager suggests that Triangle Pediatrics can increase the number of visits to 1,200 per year by cutting the price per visit by $5 and increasing the fixed advertising budget by $5,000 a. Construct the base case projected P&L statement and the projected P&L statement incorporating the proposed changes. Should Triangle Pediatrics make the suggested changes? b. How much would visit volume need to increase in order for Triangle Pediatrics to break even with the proposed changes? 5.9 Hospital, a not-for-profit, has a maximum capacity of Charity 15,000 discharges per Variable patient service costs are $495 year. nTr disrharpr Variable general and administrative costs are $5 per