Dr. Young, of Young and Associates, LLP, is examining how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows: Total Overhead...

Dr. Young had a chance to do some school physicals that would have boosted physician contact hours billed to patients from 200 to 250 hours. Suppose Dr. Young, guided by the linear cost function, rejected this job because it would have brought a total increase in contribution margin of $9,000, before deducting the predicted increase in total overhead cost, $10,000. What is the total contribution margin actually forgone?

Extracted text: Dr. Young, of Young and Associates, LLP, is examining how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows: Total Overhead Costs Physician Contact Hours Billed to Patients $ 90,000 105,000 150 200 111,000 125,000 137,000 150,000 250 300 350 400