PLEASE SHOW FORMULAS AND EXPLANATION

Clipboard Font B21 X V fx A B C D m F G H Problem #1 15 Points 2 Assume that LIU Healthcare has the following cost structure: W 4 Fixed Costs $625,000 5 Variable Cost per procedure $42.50 6 Average revenue (charge) per procedure $130 7 8 Assume the group expects to perform 3,500 procedures during the 9 10 a) Construct the group's base case projected P&L statement 11 b) What is the group's contribution margin? 12 c) What is the breakeven point ? 13 d) How many procedures must the practice do to make a $55,000 profit? 14 e) Now assume that the practice contracts with one HMO, and the plan proposes a 30% discount from charges on 15% of its patients. 15 Should the hospital accept the discount? YOU MUST SHOW PROFIT & LOSS STATEMENTS AND CONTRIBUTION MARGINS FOR BOTH SCENARIO 16 + 17 18 19C13 X V fx A B D E F G H Problem #6 (5 Points) 2 3 Assume you are the owner of your own HC clinic. You purchased a fleet of vans for $52,750. 4 You expect to use it for 5.5 years and sell it at $3,500 (salvage value). 5 1) What value would appear on BOTH the balance sheet and income statement at the end of 4 years, and under what names? 6 2) What amount would appear on BOTH the balance sheet and income statement at the end of 1 year, and under what names? 7 8 9 1) What value would appear on BOTH the balance sheet and income statement at the end of 4 years, and under what names? 10 11 Amount Name 12 Balance Sheet 13 14 Income Sheet 15 16 2) What amount would appear on BOTH the balance sheet and income statement at the end of 1 year, and under what names? 17 18 Balance Sheet 19 + 20 Income Statement 21 22 23 YOU MUST SHOW HOW YOU DERIVED YOUR ANSWER (DO NOT JUST PUT IN A NUMBER) 24