Question: Your clinic has fixed costs of $1,000,000, an average variable cost of $15 per visit, one contract with a HMO where you are paid on

Your clinic has fixed costs of $1,000,000, an average variable cost of $15 per visit, one contract with a HMO where you are paid on a capitates basis. Your contract pays you $15 per member per month and you have 12,000 members. Each member comes into the clinic 2 times per year. How much money are you making (losing)?

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