Reference no: EM13918878
Assume that a radiologist group practice has the following cost structure:
Fixed Cost $500,000
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.
A. Construct the groups base case projected P & L statement.
B. What is the groups contribution margin? What is its breakeven point?
C. What volume is required to provide a pretax profit of $100,000?
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 purpose a 20 percent discount from charges. Redo questions a, b, c, and d under those conditions.
|
Paid cash operating expenses
: Explain how each of the following events or series of events and any related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year end financial statements.
|
|
Increase in the market risk premium
: The returns on the three stocks are independent of one another (i.e., the correlation coefficients all equal zero). Assume that there is an increase in the market risk premium, but the risk-free rate remains unchanged. Which of the following state..
|
|
Amount would be shown as ending inventory under
: If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Avg Cost is 5.8726)
|
|
What is the incremental cost associated with producing
: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost (variable) 9,000 Rent (fixed) 4,000 Depreciation (fixed) 6,000 Other (fixed) 1,000 Total $36,000 The company is curre..
|
|
Construct the groups base case projected
: Construct the groups base case projected P & L statement-What is the group's contribution margin? What is its breakeven point-What volume is required to provide a pretax profit of $100,000
|
|
How was the product introduced to the market
: Define the term innovation. Then, research what you think is an example of an innovative product or service. Include the following within your discussion:- What is your product, and why do you feel the product you have selected is innovative within..
|
|
Preparing a budget and analyzing the results of operations
: Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the effectiveness of an organization's operations.
|
|
Consultant to investigate a potential violation of corporate
: Suppose a large aerospace engineering firm has immediately hired you as a consultant to investigate a potential violation of corporate policy and data theft. You have been informed that an employee may have been using corporate email to send confi..
|