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Juarez Healthcare Center receives reimbursement from C. H.E.A.T.E.M. insurance company. Juarez receives $20 per physical therapy session. Each session lasts 15 minutes. Because of a shortage of physical therapists, Juarez often finds it necessary to use a temporary service to provide therapists. Assume collections and other variable cost amount to $5 per visit and all other facility costs are fixed.
-What is the most Juarez should pay for physical therapists?
A) $15 per hour
B) $25 per hour
C) $60 per hour
D) $80 per hour

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Quizplus · Accepted Answer

Juarez Healthcare Center earns $20 per session, with each session lasting 15 minutes. After subtracting the variable cost of $5 per visit, the net income per session is $15. Since there are 4 sessions in an hour, the maximum they can pay a therapist per hour while breaking even is $15 x 4 = $60.

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