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Question: triangle pediatrics currently provides 1000 visits per year at a...

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Triangle Pediatrics currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $30, and total fixed costs are $15,000. The business manager suggests that Triangle Pediatrics can increase the number of visits to 1,300 per year by cutting the price per visit by

$5 and increasing the fixed advertising budget by $7,500.

Based on this scenario, what are the profits at a volume of 1,300 units?

A: ($3,000)

B:   $8,900

C:   $23,000

D:   $54,000

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