expand or reduce decision

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lauren is a physician who provides 100 exams per month charging $100 per exam. her avoidable fied costs attributable to the exams is $1000 per month and she pays a lab an average of $15 per exam. she raised fee to $125 eventhough she will have a 10% loss in the number of exams she does per month. Determine the current and predicted revenues, variable costs, and total contribution margin. what do you recommend she do? and why.


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