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Variable costs are projected at 200 per clinic visit and

Oakwood Primary Care Clinic is considering a capitation arrangement with a managed care organization in which the clinic would provide services to 1,500 members at $100 per member per month. Variable costs are projected at $200 per clinic visit, and fixed costs for the agreement are $800,000. What is the breakeven point in volume of clinic visits?

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Finance Basics: Variable costs are projected at 200 per clinic visit and

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