(Solved by Humans)-Laurie Vaden is a physician with her own practice. She has

Question

?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 Product Margin?

2) Predicted Product Margin