Question
Assume that a radiologist group practice has the following cost structure: Fixed costs $506,078 Variable cost per procedure $21 Charge (revenue) per procedure $103 Furthermore,
Assume that a radiologist group practice has the following cost structure:
| Fixed costs | $506,078 |
| Variable cost per procedure | $21 |
| Charge (revenue) per procedure | $103 |
Furthermore, assume that the group expects to perform 7,186 procedures in the coming year. Also assume that the practice contracts with one HMO, and the plan proposes a 21 percent discount from charges. What volume is required to provide a pretax profit of $190,000?
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
