Zack Millman Clinic is seeking to provide sports-related health care services to high schools in the area. Zack Millman estimates that the cost to provide care would be $1,000 plus $12 per athlete per month on a 9-month basis. The high schools jointly offered to pay the clinic $10,000 for a 9-month contract to cover 75 athletes.
a. If the clinic accepts this bid and contracts with the high schools, will it earn a profit or loss for the year? How much?
b. What would the contract price have to be for Millman to break even?
c. If Zack Millman Clinic wants to earn $5,000 in profit for the year, and the school system preferred to pay on per athlete per month basis, what would the price have to be?