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What volume is required to provide a pretax profit

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Reference no: EM132116300

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

Fixed costs: $500,000

Variable costs per procedure: $25

Charge (revenue) per procedure: $100

Assume that the group expects to perform 7,500 procedures in the coming year.

What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000?

Reference no: EM132116300

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