Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...

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 proce-
dures in the coming year.

a. Construct the group’s base case projected P&L statement.
b. part 1 - What is the group’s contribution margin? b. - part 2 - What is its breakeven point?
c. part 1 - What volume is required to provide a pretax profit of $100,000?
c - part 2 - A pretax profit of $200,000?

Expert Solution

CONTRIBUTION MARGIN IS IN DOLLAR TERMS AS NOTHING WAS MENTIONED

jeff jeffy answered 3 years ago

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