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What is the groups underlying cost structure

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Question - Assume that a radiology group practice has the following cost structure:

Fixed cost $900,000 variable cost per procedure: $50

Furthermore, assume that the group expects to perform 1,500 procedure in the next coming year.

a. What is the groups underlying cost structure?

b. What are the groups expected total cost?

c. What are the groups estimated total cost at 2,000 procedures? At 5,000 procedures?

Reference no: EM132504287

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