Question: Fixed Costs $525,000 Variable Cost per procedure $35 Average revenue (charge) per procedure $125. perform 8,500 procedures during the coming year. Construct the group's base

Fixed Costs $525,000 Variable Cost per procedure $35 Average revenue (charge) per procedure $125. perform 8,500 procedures during the coming year.

Construct the group's base case projected P&L statement, find the contribution margin. Find the breakeven point using Contribution Margin.

How many procedures must the practice do to make a $100,000 profit?

Assume that the practice contracts with one HMO, and the plan proposes a 22 percent discount from charges on 25% of its patients. Should the hospital accept the discount?

What is the group's new contribution margin?

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