Question: please help and post work for each part Fill in the missing data indicated by question marks. 5.6 Assume that a radiology group practice has
Fill in the missing data indicated by question marks. 5.6 Assume that a radiology group practice has the following cost structure: Fixed costs Variable cost per procedure Charge (revenue) per procedure $500,000 25 100 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 its breakeven point (in num- ber of procedures)? c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000? d. Sketch out a CVP analysis graph depicting the base case situation. e. Now, assume that the practice contracts with one HMO for all 7.500 procedures and the plan proposes a 20 percent discount from charges. Answer questions a, b, c, and d again under these conditions. to rara facility. has the following cost structure
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