Problem $2$

Assume that a cardiologist provides three levels of examination: $1,2$ and $3,$ that vary in depth and

complexity. The numbers of examinations administered annually are $3,360$ Level $1,1,120$ Level $2,$ and

$2,560$ Level $3.$ An RVU analysis indicates that a Level $1$ examination requires $20$ RVUs, a Level $2$ exam $40$

RVUs, and a Level $3$ exam $60$ RVUs. See table $($below$)$ for additional information.

a$.$ Calculate total RVUs, Indirect costs, total costs, cost per level, and average cost per visit. Hint:

complete the missing values in the table below.

b$.$ If the goal of the practice is to earn $20$ percent profit margin on each examination, how should the

examinations be priced? Hint: complete the sissing values in the table below: