Please answer required 1,2,3 questions

(Adapted from a problem by Joseph San Miguel) LO 13-18 13-40 Target Costing; Health Care VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment accord subscribers. The per member, per month rate (PMPM) is determined by estimating the health care ing to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from cost per enrollce within a geographic location. The average health care coverage in North Carolina costs $368 per month, which is the same amount irrespective of the subscriber's age. Because indi viduals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $325, VIP-MD wants to maintain its current market penetration and hopes to increuse the number of its ...rollees in the current year. The latest data sa the number of enrollees and the associated costs follow: Enrollment in Current Year Projected Enrollment Next Year Average Monthly Cost in Current Year Age 5-14 15-19 20-24 25-34 3544 45-54 55-64 65-74 75-84 85 years and older 45,688 82,456 95,873 66.246 133,496 166,876 85,496 99,624 156,288 67895 23,499 1,023,437 48,977 84,663 95,887 67.882 132,554 175,446 90,889 101.923 161.559 72,465 26,849 1,059,094 $ 11,147,872 10.059.632 8,436,824 9,539,424 26,432,208 38,882, 108 22,741,936 28,691.712 49,518,144 33,432,760 24,286,475 $263,169,095 Required 1. Calculate the target cost required for VIP-MD to maintain its current market share and profit per enrollee in the current year 2. Costs in the health care industry applicable to VIP-MD and National Physicians are expected to increase by 7s in the coming year. VIP-MD is planning for the year ahead and is expecting all providers, include ing VIP-MD and National Physicians, to increase their rates by $25 to $350. Calculate the new target Custassuming again that VIP-MD wants to maintain the same profil per enrollee as in the current year 1. Identify the critical success factors for VIP-MD. How can the HMO maintain its market share? 013-11 13:41 Target Cost: Warehousing Caldwells have the