You serve 3,000 price pay patients and 1,000 HMO members. Fixed costs are $500,000, incremental costs is $50. You currently charge private pay patients $75 and HMO members $60....
a. This line of business is profitable
b. Profits will increase of u stopped serving HMO members
C. You should stop serving HMO members of fixed costs increase to $60,000
D. All the above