8) Docking Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $40,000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pays $5,000. For damage under $10,000, no coverage is offered. The company estimates the probability of no damage to be 0.60, the probability of damage between $0 and $10,000 to be 0.25, the probability of damage between $10,000 and $40,000 to be 0.12, and the remaining probability on total loss. If the company wants to make a profit of $200 above the expected cost on each policy, what should they price the policy at