use part 5.6 part part d to answer part b on 5.9and to answer 5.9 c use 5.6 part b

5:07 Search Aa QD b. 1.400 1,000 ? ? 5600 1,600 ? $2.400 400 C 4.000 Fill in the missing data indicated by question marks. 5.6 Assume that a radiology group practice has the following cost structure: Fixed costs Variable cost per procedure Charge (revenue) per procedure $500,000 25 100 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 in number of procedures)? 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 for all 7,500 procedures and the plan proposes a 20 percent discount from charges. Answer questions a, b, c, and d again under these conditions 5.7 General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: $10,000,000 Fixed costs Variable cost per inpatient day Charge (revenue) per inpatient day 200 1,000 149 MO 3 Reader Contents Notebook Bookmarks 5:07 Search Aa QD Wages and benefits Rent Depreciation Utilities Medical supplies Administrative supplies 220,000 5.000 30,000 2.500 50,000 10,000 Assume that all costs are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to break even? c. What number of visits is required to provide you with an after-tax profit of $100,000? 5.9 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of s15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of S150 for each of its 20,000 members. Past experience indicates that the population served will average two visits per year. a. Construct the base case projected P&L statement on the contract b. Sketch two CVP analysis graphs for the clinic-one with number of visits on the x-axis, and one with number of members on the x-axis. Compare and contrast these graphs with the one in problem 5.6. part d. c. What is the clinic's per-visit contribution margin on the contract? How does this value compare with the value in problem 5.6, part b? d. What profit gain can be realized if the clinic can lower per-member utilization to 1.8 visits? Swipe to turn pages 149 DO ji 3 Reader Contents Notebook Bookmarks 5:07 Search Aa QD b. 1.400 1,000 ? ? 5600 1,600 ? $2.400 400 C 4.000 Fill in the missing data indicated by question marks. 5.6 Assume that a radiology group practice has the following cost structure: Fixed costs Variable cost per procedure Charge (revenue) per procedure $500,000 25 100 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 in number of procedures)? 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 for all 7,500 procedures and the plan proposes a 20 percent discount from charges. Answer questions a, b, c, and d again under these conditions 5.7 General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: $10,000,000 Fixed costs Variable cost per inpatient day Charge (revenue) per inpatient day 200 1,000 149 MO 3 Reader Contents Notebook Bookmarks 5:07 Search Aa QD Wages and benefits Rent Depreciation Utilities Medical supplies Administrative supplies 220,000 5.000 30,000 2.500 50,000 10,000 Assume that all costs are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to break even? c. What number of visits is required to provide you with an after-tax profit of $100,000? 5.9 Grandview Clinic has fixed costs of $2 million and an average variable cost rate of s15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of S150 for each of its 20,000 members. Past experience indicates that the population served will average two visits per year. a. Construct the base case projected P&L statement on the contract b. Sketch two CVP analysis graphs for the clinic-one with number of visits on the x-axis, and one with number of members on the x-axis. Compare and contrast these graphs with the one in problem 5.6. part d. c. What is the clinic's per-visit contribution margin on the contract? How does this value compare with the value in problem 5.6, part b? d. What profit gain can be realized if the clinic can lower per-member utilization to 1.8 visits? Swipe to turn pages 149 DO ji 3 Reader Contents Notebook Bookmarks