Activity: You have been asked to set a rate for a new nursing home. Cost are budgeted to be $1,150,100 for the projected 15,430 patient days. If 50 percent of the patients are private pay with an expected 5 percent bad-debt write off, 10 percent pay average cost and 40 percent pay $65.00 per day.

Question: What rate must be set to generate $90,000 income?