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Can you please help me with this questions and it's subsequent parts? Assume that a radiologist group practice has the following cost structure: Fixed costs
Can you please help me with this questions and it's subsequent parts?
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 Furthermore, assume that the group expects to perform 7, 500 procedures in the coming year. a. Construct the group's base case projected P & L statement. b. What is the group's contribution margin? What is its breakeven point? c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000? d. Sketch out a CVP analysis graph depicting the base case situation. e. Now assume that 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
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