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Assume that a specialty group has the following cost structure and that the group expects to perform 7,500 procedures in the coming year:

  •  Fixed costs     $500,000
  •  Variable Cost per procedure    $25
  •  Charge (revenue) per procedure    $100

Assume that the practice must accept a 20% discount in order to stay competitive. What volume of procedures must they now perform in order to make the same profit they have been making?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9995232

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