Question
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 Further,
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 Further, assume the group expects to perform 7,500 procedures in the coming year. a. Construct the groups base case project P&L statement. ALREADY ANSERED b. What is the groups contribution margin? What is its breakeven point? ALREADY ANSERED c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000? ALREADY ANSERED d. Sketch out a CVP analysis graph depicting the base case situation. NEEDS ANSWERED e. Now assume the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges. Redo questions a, b. c, and d under these conditions NEEDS ANSWERED
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