AHIP Exam AHM-520 Topic 6 Question 105 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 105
Topic #: 6

For a given healthcare product, the Magnolia Health Plan has a premium of $80 PMPM and a unit variable cost of $30 PMPM. Fixed costs for this product are $30,000 per month. Magnolia can correctly calculate the break-even point for this product to be:

A274 members

B375 members

C600 members

D1,000 members

Show Suggested Answer

Suggested Answer: C

by Hayley at Jan 11, 2025, 07:39 PM

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Sherill

4 days ago

But the fixed costs are $30,000, so I believe it's 274 members.

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Vicky

5 days ago

I disagree, I calculated it to be 375 members.

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Sherill

13 days ago

I think the break-even point is 274 members.

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