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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 Assume the group expects
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
Assume the group expects to perform 7500 imaging procedures in the coming year.
Using the table below, construct the group's base-case profit and loss statement in column A.
Category/Volume 7500 7500 ?
A B C
Total revenues ? ? ?
Total variable costs ? ? ?
Total contribution margin ? ? ?
Total fixed costs ? ? ?
Profit/(loss) ? ? ?
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