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Posted: July 17th, 2024

Georgia Tech-MGT 6120-Laurie Vaden is a physician with her own practice.

Laurie Vaden is a physician with her own practice. She has developed contracts with several large employers to perform routine exams, fitness-for-duty exams and initial screening of on-the-job injuries. She provides 100 exams per month, charging $100 per exam. Under this contract, she estimates her avoidable fixed costs attributable to the exams is $1,000 per month, and she pays a lab an average of $15 per exam. She has decided she needs to increase profit, so she is considering raising her fee to $125, even though there may be a 10% loss in the number of exams she does per month. Determine the current and predicted: revenues, variable costs, total contribution margin and product margin. What do you recommend she do?1) Current Revenue:2) Current Variable costs:3) Current total contribution margin:4) Current product margin:5) Predicted Revenue:6) Predicted variable costs:7) Predicted total contribution margin:8) Predicted product margin:9) Recommendation? Enter RAISE or NO CHANGE as your answer.

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