IMPORTANT: PLEASE SHOW STEP BY STEP SO THAT I CAN UNDERSTAND ALONG WITH EVERY FORMULA USED

Bronx Lebanon Diagnostic Care has the following cost structure:

Fixed Costs $800,000

Variable cost per procedure $35

Charge (revenue) per procedure $110

Assume that the Bronx Lebanon Diagnostic Care expects to perform 7,500 procedures in the coming year.

a. Construct the groups base case projected P & L statement.

Insert your response here.

b. What is the groups contribution margin?

Insert your response here.

c. What is the breakeven point? (in number of procedures)

Insert your response here.

d. Let say they contract with one HMO for all 7,500 procedures and the plan proposes a 20 percent discount from charges. Answer questions a,b,c under these conditions.

Insert your response here.