5.3 Assume that a radiologist group practice has the following cost

structure:

Fixed costs $500,000

Variable cost per procedure 25

Charge (revenue) per procedure 100

Furthermore, assume that the group expects to perform 7,500 proce- dures in the coming year.

a. Construct the groups base case projected P&L statement.

b. What is the groups contribution margin? What is its breakeven

point?

c. What volume is required to provide a pretax profit of $100,000? A

pretax profit of $200,000?

Please show work. I'm having difficulty understanding formulas.

NOTE - I