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Assume the radiology group practice has the following cost structure: Fixed costs = $500,000 Variable cost per procedure = $25 Charges (revenue) per procedure = $100 the group expects to perform 7500 procedures next year. A. Construct a group’s base projected P&L statement B. What is the group’s contribution margin? What is its breakeven point? C. What is the volume required to provide pretax profit of $100,000? D. Assume the practice contracts with an HMO and the plan purposes a 20% discount from charges. Construct the new P&L. What is the breakeven point?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91618125

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