Profit maximization-rate increase and charges


Problem: To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with:

A. High charge payer mix/high write-offs for bad debt, charity, & discounts

B. Low charge payer mix/low write-offs for bad debt, charity, & discounts

C. High charge payer mix/low write-offs for bad debt, charity, & discounts

D. Low charge payer mix/high write-offs for bad debt, charity, & discounts

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Finance Basics: Profit maximization-rate increase and charges
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