Assume that LIU Healthcare has the following cost structure: Fixed Costs - Variable Cost per procedure $42.50 - Average revenue (charge) per procedent $130 Assume the group expects to perform 3,500 procedures during the coming year 3,500 1 a) Construct LIU Healthcare's base case projected P&L statement 12 b) What is LIU Healthcare's contribution margin? 13 c) What is the breakeven point using CM? 14 d) How many procedures must the practice do to make a $55,000 profit? 15 e) Now assume that the practice contracts with one HMO, and the plan proposes a 30% discount from charges on 15% of its patients. 16 Should the hospital accept the discount? YOU MUST SHOW PROFIT & LOSS STATESMENTS AND CONTRIBUTION MARGINS FOR BOTH SCENARIOS