## [solution]: Good morning, I need your help. I received last night from my

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Good morning, I need your help. I received last night from my teacher this exercise to deliver it tonight, but for the short time I have, besides I'm working,I need to know if you can help me.

Leo

You have been asked to establish a pricing structure for anesthesiology on a pre-procedure

basis. Present budgetary data is presented below:

Budgeted procedures 7,200

Budgeted cost per procedure \$ 48

Desired profit \$ 100,000

It is estimated that Medicare patients comprise 50% of total anesthesiology volume and will

pay on average \$60 per procedure. Approximately 25% of the patients are cost payers. The

remaining 25% of the patients are covered by payers who receive an average of a 4%

discount off of the full charges. Based on this:

1. To the nearest dollar, what rate (i.e., full charge per procedure) must be set to generate

the required \$100,000 in profit in the preceding example? (your answer might be slightly

different due to rounding. Pick the closest.)

a. \$152

b. \$95

c. \$64

d. \$69

e. \$83

2. If the forecasted volume increased to 9,000 procedures and the budgeted cost per

procedure decreased to \$44, while all other variables remained constant, what price should

be established?

a. \$54

b. \$59

c. \$64

d. \$69

e. \$83

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