Quickcare is a health care franchise. It charges $150 per physical exam. Fixed cost is $50000 and v Show more Quickcare is a health care franchise.
It charges $150 per physical exam. Fixed cost is $50000 and variable cost is $55 per exam. To improve margin clinic will increase price to $175. Administration believes this will decrease volume by 33%. Last year 1500 exams were performed. If program closes completely all $50000 in fixed cost will be saved. a. What should Quickcares decision be assuming that this price increase would decrease the number of patients seen by one-third. b. What price would QuickCare have to charge to make up for the loss of patients? c. Using the information in a should Quickcare make the same decision if 40% of the fixed costs are avoidable. Would it be better or worse off? Why? Show less
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