show your work using the formula I provided

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 Total volume Average cost $100,000 1,000 $100 Paver volumes Medicare (payment rate =$95) Medicaid (payment rate = $75) Managed Care # 1 (payment rate = $ 1 1 0) Managed Care # 2 (pay 80% ofcharges) Uninsured pay 10% ofcharges) Total all payers 400 100 300 100 100 1,000 Desired net income S5,000 Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan #2 (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