Assume hat a radiology group practice has the following cos t structure:

Fixed cost $900,000 variable cost per procedure: $50

Furthermore , assume that the group expects to perform 1,500 procedure in the next coming year.

a.What is the groups underlying cost structure?

b.What are the groups expected total cost?

c.What ae the groups estimated total cost at 2,000 procedures? At 5,000 procedures?