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What is the breakeven number of procedures

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Reference no: EM131045335

Assume a Cardiology private practice has the following cost structure:

Fixed cost = $400,000

Variable cost per procedure = $30

Assume the group expects to perform 8,000 procedures this year

What is the group’s underlying cost structure? ______________________________

What is the group’s expected total costs? ___________________________________

What would the estimated costs be of:

5,000 procedures? __________________________

10,000 procedures? ___________________________

What is the average cost per procedure at 5,000, 8,000 and 10,000 procedures?

5,000 = ______________________________

8,000 = ______________________________

10,000 = _____________________________

What is the breakeven number of procedures they must do if they set their price at $200 per procedure?

Reference no: EM131045335

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