The Sans Roentgen Outpatient MRI Center has asked you to detemine the price to be charged for each MRI scan for the first year of operations. Below is the relevant budget data:
DESCRIPTION BUDGET
Cost-------------------------------------------------------$2,100,000
Volume-----------------------------------------------------3,650
Medicare Mix-----------------------------------------------60%
Private Insurance Mix--------------------------------------40%
Medicare Payment Per Procedure-----------------------------$650
Private Insurance Pays-------------------------------------85% of charges
Desired Profit---------------------------------------------$500,000
In 700 to 1000 words please help me explain what price the MRI Center must charge in order to meet its desired profit of $500,000. Be sure to include all calculations and rationales behind your answer. I need help with this, I am not sure where to even start. Any help you could give me would be greatly appreciated.