You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below:

Budgeted procedures: 10,000

Budgeted cost $400,000

Desired profit $80,000

It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

Payer Volume% Discount %

Blue Cross 20% 4

Unity PPO 15% 10

Kaiser 10 % 10

Self-pay 5% 40

50%

Question: #2 What rate must be set to generate the required $80,000 in profit in the preceding example?