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Will this price allow your ob-gyn department

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a. The malpractice insurance rate for OB-GYN is going up by 20% and their variable costs have risen to $65. In addition, their anticipated number of patients will decrease to 2000 due to the retirement of one of their physicians. You have been told that the customary rate for OB-GYN cannot exceed $100. Will this price allow your OB-GYN department to break even? Show your work.

b. What strategies (more than one) can you put in place in order to operate at a price of $100? What strategies would you use to stay within the customary rate?

Reference no: EM133033184

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