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Assume that a radiologist group practice has the following cost structure: Fixed costs: $600,000 Variable cost per procedure: $35 Charge (revenue) per procedure: $110 Furthermore,
Assume that a radiologist group practice has the following cost structure:
Fixed costs: $600,000
Variable cost per procedure: $35
Charge (revenue) per procedure: $110
Furthermore, assume the group expects to perform 7,500 procedures in the coming year. a. Construct the group's base case projected profit and loss statement.
b. What is the group's contribution margin? What is its breakeven point?
c. What volume is required to provide a pre-tax profit of $100,000?
d. What volume is required to provide a pre-tax profit of $200,000?
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