Assume that the practice must accept a 20 discount in order


Assume that a specialty group has the following cost structure and that the group expects to perform 7,500 procedures in the coming year:

Fixed costs $500,000

Variable Cost per procedure $25

Charge (revenue) per procedure $100

Assume that the practice must accept a 20% discount in order to stay competitive. What volume of procedures must they now perform in order to make the same profit they have been making?

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Financial Econometrics: Assume that the practice must accept a 20 discount in order
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