Using the example of Table 62, assume that the average cost has jumped from $100 to$105. All other factors in the example remain the same. What will be the new required price?

Table 62 Price-Setting Example

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 (payment rate = $110)	300
Managed Care # 2 (pay 80% of charges)	100
Uninsured (pay 10% of charges)	100
Total all payers	1,000
Desired net income	$5,000