Question

You are ceo of a facility and Aetna has offered you a contract . Develop the P&L statement for the following assumptions between 0 and 55,000 procedures in increments of 2,500 :

•Health way is offering you a contract that will pay you a flat fee of $2,750,000 across all ranges of volume

•Supply costs = $42.50 per procedure

•You incur a hazardous disposal fee of $2.50 per procedure

•Fixed costs = $1,200,000

•You will need to hire an additional salaried employee with volumes of 35,000 or more at an annual cost of $47,000.

please put into an excel sheet so i can see total costs, total variable cost, total fixed cost, breakeven point, etc

Answer 1