Question: Provider A Provider B 5.2 Consider the data in the table below for three independent health services organizations Total Fixed Total Revenues Variable Costs Costs
Provider A Provider B 5.2 Consider the data in the table below for three independent health services organizations Total Fixed Total Revenues Variable Costs Costs Costs Profit $2,000 a. $2,000 b. c. 4,000 $1,400 1,000 1,600 S2,400 400 S600 Fill in the missing data indicated by question marks. 5.3 Assume that a radiologist group practice has the following cost structure: $500,000 25 100 Fixed costs Variable cost per procedure Charge (revenue) per procedure Furthermore, assume that the group expects to perform 7,500 proce- dures 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? 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, and the plan proposes a 20 percent discount from charges. Redo questions a, b, c, and d under these conditions 5.4 General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Copying and distribution of this PDF is prohibited without written permission For permission, please contact Copyright Clearance Center at www.copyright.com
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