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

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
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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