#10. Corona Laboratories is combing some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs: Test A Test B Test C Disposable Syringe $3.00 $3.00 $3.00 Blood Vial $0.50 $0.50 $0.50 Forms $0.15 $0.15 $0.15 Reagents $0.80 $0.60 $1.20 Sterile Bandages $0.10 $0.10 $0.10 Breakage/losses $0.05 $0.05 $0.05 When the tests are combined, only one syringe, form, and sterile bandage will be used. Furthermore, only one charge for breakage/losses will apply. Two blood vials are required, and reagent costs will remain the same (reagents from all three tests are required). Allied estimates that 2,000 of the combined tests will be conducted during the first year. The annual allocation of direct fixed and overhead costs totals $40,000. What price must be set to cover the total overhead costs at the projected volume. What price must be charged to cover full costs plus a $20,000 profit? #11. Birmingham Medical Center estimates that a capitated population of 50,000 would have the following base case utilization and total cost characteristics: In addition to medical costs, Birmingham MC allocated 10% of the total premium for administrative expenses/reserves. Service Category Inpatient Days per 1,000 Average Cost per Day Enrollee General 175 $1,500 Surgical 125 $1,800 Psychiatric 70 $700 Alcohol / Drug Abuse 38 $500 Maternity 42 $1,500 Total 450 $1,367 What is the PMPM rate that Birmingham MC must set to cover medical costs and administrative expenses? Remember that "Inpatient Days" is per 1,000 enrollees. Also, the entire capitated population is 50,000