Dr. Jones, a respected chiropractic physician, believes his skills at aligning spines should earn 50 percent as much as the costs of providing alignment services, so he chooses a markup of 50 percent on his average total costs. A marketing research firm has estimated the demand for his work as a linear function of the price he charges:
Q = 300 - 1/3 P
where Q is the number of back alignments performed each month, and P is the average price of a back alignment. His accountant tells him that his average variable costs are constant and equal to $204 per alignment. Total fixed cost is $9,900 per month.
-After implementing the cost-plus price computed in part e above, the doctor plans to treat all patients who come for treatment (i.e., he no longer limits his patient load to just 150 patients per month). His profit when he implements the cost-plus price in part e will be $_____________.

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The Answer of Dr. Jones, a respected chiropractic physician, believes his skills at aligning spines should earn 50 percent as much as the costs of providing alignment services, so he chooses a markup of 50 percent on his average total costs. A marketing research firm has estimated the demand for his work as a linear function of the price he charges:
Q = 300 - 1/3 P
where Q is the number of back alignments performed each month, and P is the average price of a back alignment. His accountant tells him that his average variable costs are constant and equal to $204 per alignment. Total fixed cost is $9,900 per month.
-After implementing the cost-plus price computed in part e above, the doctor plans to treat all patients who come for treatment (i.e., he no longer limits his patient load to just 150 patients per month). His profit when he implements the cost-plus price in part e will be $_____________.

Dr Jones, a Respected Chiropractic Physician, Believes His Skills at Aligning