Assume that radiologist group practice has cost structure

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Reference no: EM131044905

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

Fixed Cost: $350,000

Variable Cost per Procedure: $12.50

Charge (revenue) per procedure: $85

Expected Volume: 7,000 procedure

Construct the group’s base case projected P&L statement

What is the group’s contribution margin?

What is the group’s breakeven point?

What volume is required to provide a pretax profit of $100,000

Assume that the group is considering contracting with a single payer who requires a 10% discount on charges for all patients. Re-do a-d and explain whether the group should take the contract.

Reference no: EM131044905

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