A primary care physician practices only physical examinations for a local

industrial employer. Depending on the type of intake $-$ i$.$e$.$ new hire vs$.$

annual assessment $-$ there are three $(3)$ levels of physical exam $($I$,$ II$,$ and III$)$

performed by the practice that vary in terms of depth and complexity. An

RVU analysis indicates that a Level I exam requires, on average, $10$ RVU's;

a Level II exam requires, on average, $20$ RVU's; and a Level III exam

requires, on average, $30$ RVU's. The total cost to administer the practice,

including an in$-$house diagnostic laboratory, amounts to $$500,000$ annually

and the number of physical exams performed annually are $2,400$ for Level I,

$800$ for Level II$,$ and $400$ for Level III.

A$.$ Using the RVU methodology, what is the estimated cost for each

type of physical exam?

B$.$ If the goal of the practice is to earn a $20\%$ profit margin on each

exam, how should each be priced?