Computed marginal profit for various costing profiles, Operation Management

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An HMO requests your hospital services for its obstetrics division. It offers to pay your hospital $2,000 for a vaginal delivery without complications (DRG 373). You look at the Standard Test Procedure (STP) for this Diagnosis-Related Group (DRG) and discover that your hospital's cost is $2,400. Calculated marginal profit for various costing profiles

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