Problem $1$

Assume that a radiologist group practice has the following cost structure:

Furthermore, assume that the group expects to perform $8,000$ procedures in the coming year.

a$.$ Construct the group's base case projected P&L statement. $($See exhibit $5-3).$ Hint: complete the

following table.

b$.$ What is the group's contribution margin per procedure?

c$.$ What is the group's breakeven point in in number of procedures?

d$.$ What volume is required to provide a pretax profit of $$150,000?$