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Found in Fundamentals of Healthcare Finance 2nd ed. (Please show work)

Assume that a radiology 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 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 it breakeven point?

c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000?

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Financial Management, Finance

Category:- Financial Management
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