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QUESTION 1 5 points Save Answer Start with the price-setting example from the text. The initial assumptions are provided in the table below. Total cost $100,000 Total volume 1.000 Average cost $100 Payer volumes Medicare payment rate $95 400 Medicaid payment rate $75) 100 Managed Care 1 300 payment rate $110) Managed Care #2 100 pay 80 of charges Uninsured pay 10% of charges 100 Total all payers 1.000 Desired net income $5,000 Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan th2 (MC#2) wants to pay a lower cost per case and is willing to send 250 more patients (350 total from MC#2) to the clinic in return for a rate of $110 per case. Assume that the average cost per case drops to $90 due to the economies of scale. All other assumptions are unchanged. What is the new required price