Your hospital has been approached by a major HMO to perform all their MSDRG $505$ cases $($foot surgeries$).$ They have offered a flat payment of $$8,000$ per case. You have reviewed your charges for MSDRG $505$ during the last year and found the following profile:

In the above data set, assume that the hospital's cost$-$to$-$charge ratio is $0\mathrm{.}75$ for routine services and $0\mathrm{.}70$ for total ancillary services. Using this information, what would the average cost of MSDRG $505$ be$?($Your answer might be slightly different due to rounding. Pick the closest.$)$

Select one:

A$.$

$$8,100$

B$.$

$$8,000$

C$.$

$$11,300$

D$.$

$$7,613$

E$.$

$$8,070$