Abc medical center has cardiology equipment with fixed

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ABC Medical Center has cardiology equipment with fixed depreciation costs of $150,000 per year. Variable costs per patient are $200. Using this information, calculate the following: (a) Full and average cost at patient volume levels of 100, 500 and 1500. (b) Blue Cross wishes to contract for 500 procedures at a price of $350 each. Assuming fixed costs have been covered, and capacity exists, calculate the incremental profit for 700 additional patients.

Reference no: EM13586373

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