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 Cross204

Unity PPO1510

Kaiser1010

Self Pay540

____________

50%

Question: What rate must be set to generate the required $ 80,000 in profit in the preceding example? Can someone please help me with this calculation. Please explain in detail you answer and calculation so that I can study it. I am trying hard to understand this process. Thank you.