The Akron Clinic is looking to expand a services in the community which will cost $120,000 a year. They expect 1,000 patients a year with 60% of those being Medicare with a payment of $100 per procedure. Medicaid pays $60, and they expect 150 Medicaid patients. They expect 200 will be UHC insured patients with a payment rate of 70% of charges. The remaining patients are uninsured and the Clinic expects to collect only 25% of charges.
What list Price should the clinic set to generate an annual pre tax profit of $10,000?
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