Assume that a radiologist group practice has the following cost structure:
Fixed costs | $800,000 |
Variable cost per procedure | $60 |
Charge (price) per procedure | $460 |
Furthermore, assume that the group expects to perform 5,000 procedures in the coming year.
a. Construct the group’s base case projected P&L statement. (See exhibit 5-5).
b. What is the group’s contribution margin per unit?
c. What is the group’s breakeven point in volume?
d. What volume is required to provide an operating profit of $400,000?
e. What is the group’s operating leverage?
f. Provide an interpretation of the calculated operating leverage and its implication in regard to business risk.
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Assume that a radiologist group practice has the following cost structure:
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000?...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $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. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000? e. Complete...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). P & L Statement Revenue 750,000 (100 x 7500) Variable Costs -187,500 (25 x 2500) Contribution 562,500 Fixed Costs -500,000 Net income/profit 62,500 b. What is...
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$25 ☺ ☺ 183 (202 of 745) A my © © 150% un mong uulu munavu vy quvuon R. -3 Assume that a radiologist group practice has the following co structure: Fixed costs $500,000 Variable cost per procedure Charge (revenue) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedur 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 poin...
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Brookly Diagnostic has the following cost structure Fixed cost $725,000 Variable Cost Per Procedure $15 Furthermore, assume that the center in the coming year. expects the perform 2,500 procedures . What is the group's underlying cost " B What are the © What are the group's estimated to tal cost at 3, 500 purchase procedures? At 5,000 Procedures? - what is the an average cost per procedures at 4,000, 5,500 and 10,000 procedures? groups expected total cost? ?
$600 C. 4,000 400 Fill in the missing data indicated by question marks. Assume that a radiology group practice has the following cost structure: 5.6 $500,000 Fixed costs Variable cost per procedure 25 Charge (revenue) per procedure 100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. 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)? What volume is...
it is problem 5.9 I need help in
variable cost rate of capitation payment of tes that the population $100,000? 5.9 Grandview Clinic has fixed costs of $2 million and an average variable $15 per visit. Its sole payer, an HMO, has proposed an annual capitation $150 for each of its 20,000 members. Past experience indicates that the served will average two visits per year. a. Construct the base case projected P&L statement on the contract. b. Sketch two CVP...