2. You are considering starting a radiology practice. Your financial projections for the first year of...

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2. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows (see problem 1): Number of visits Fixed Wages and benefits $1,200,000 Medical supplies $0 Rent $200,000 Utilities $36,000 Administrative supplies $0 Totals $1,436,000 24,000 visits Variable $0 $300,000 $0 $0 $30,000 $330,000 Furthermore, assume that the group expects to perform 24,000 procedures in the coming year at an average of $150 per visit. a. Construct the group's base case projected P&L statement. (See exhibit 5-5). b. What is the group's contribution margin per visit? c. What is the group's breakeven point in volume (number of visits? d. What volume is required to provide an operating profit of $267,125? e. What is the group's operating leverage? f. Provide an interpretation of the calculated operating leverage and its implication in regard to business risk. g. Sketch out a properly labeled CVP analysis graph depicting the base case situation. See Exhibit 5-4 (Hint: using data from part e (above), populate the following table. Produce the sketch using Excel. When done, copy/paste the sketch below the table) Volume 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Revenue Fixed Costs Total Costs 2. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows (see problem 1): Number of visits Fixed Wages and benefits $1,200,000 Medical supplies $0 Rent $200,000 Utilities $36,000 Administrative supplies $0 Totals $1,436,000 24,000 visits Variable $0 $300,000 $0 $0 $30,000 $330,000 Furthermore, assume that the group expects to perform 24,000 procedures in the coming year at an average of $150 per visit. a. Construct the group's base case projected P&L statement. (See exhibit 5-5). b. What is the group's contribution margin per visit? c. What is the group's breakeven point in volume (number of visits? d. What volume is required to provide an operating profit of $267,125? e. What is the group's operating leverage? f. Provide an interpretation of the calculated operating leverage and its implication in regard to business risk. g. Sketch out a properly labeled CVP analysis graph depicting the base case situation. See Exhibit 5-4 (Hint: using data from part e (above), populate the following table. Produce the sketch using Excel. When done, copy/paste the sketch below the table) Volume 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Revenue Fixed Costs Total Costs

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a Projected Profit Loss Statement Category Revenue Variable Costs Wages and benefits Medical supplie... View the full answer