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 more, assume that the group expects to perform 7,500 procedures in the coming year.

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