Need help with areas highlighted please!!!

Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge(revenue) per procedure $100 Further more, assume that the group expects to perform 7,500 procedures in the coming year.

a. Construct the groups base case projected profit and loss statement.

b. What is the groups contribution margin? What is its breakevenpoint?

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

e. Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges. Redoquestions a,b,c, and d under these conditions

Problem 5.3 a,b.ce 7,500 units 7,500 Revenue Per unit revenue Variable costs Per unit revenue Variable costs 56? units 7,500 Per unit variable cost Corntribution margin Fixed costs Net income Per unit variable cost Contribution margin 500,000 ($500,000 Net income Contributon margin Per unit revenue Per unit cost Contribution margin Per unit revenue Per uriit cost Fixed costs $500,000 Fixed costs Break eve vlune Break ever volurre Target protit Fixed costs Target CM C.M per unit Target protit Fixed costs Target CM $500,000 500,000 500,000 500,000 $500,000 CM per unit #DIV/0! Required procedures #Dr DIV/0 ! Page 1 of 1 122 words