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How much money are you making

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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 a capitated 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)?

1. $2,160,000

2. $1,160,000

3. $800,000

4. None of the above.

Reference no: EM132109881

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