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Complete the following and submit in either a word document or excel. Make sure you add your own language for the analysis of each
Complete the following and submit in either a word document or excel. Make sure you add your own language for the analysis of each 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 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Complete the following questions and show your work for full credit. a. Construct the group's base case projected P&L statement. b. What is the group's contribution margin? What is its accounting breakeven point? c. What volume is required to produce a pretax profit of $100,000? A pretax profit of $200,000? d. Sketch out a CVP analysis graph depicting the base case situation. f. Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges. Answer questions a, b, and c under these conditions.
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