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 procedures in the coming year.

1. What volume is required to produce a pretax profit of $100,000? A pretax profit of $200,000?
2. Sketch out a CVP analysis graph depicting the base case situation.