1. (7 points) Mill bridge Memorial Hospital (MMH) provides comprehensive physical exams. The charge per exam is $100, while the variable cost per exam is $65. Thirty percent of the patients who come in for exams are private pay. They must pay the full charge. Seventy percent of the patients are covered by an insurance company that has an agreement with MMH that reduced the charge by 20 percent. MMH has $210,000 in fixed costs per year. 


Table 1. MMH


  Percentage of Patients Charge (P) Variable Cost (VC) Contribution Margin (CM) Weighted Average CM
Patients without insurance 30%          
Patients with insurance 70%        





  1. Fill in Table 1 above. 
  2. What is the total weighted average contribution margin?
  3. How many exams must MMH provide in order to break even? Show your calculation.