What volume is required to provide pretax profit

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Reference no: EM13863588

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

Fixed costs $500,000

Variable cost per procedure $25.00

Charge (revenue) per procedure $100.00

Furthermore, assume that a group expects to perform 7,500 procedures in the coming year.

A) Construct the group’s base projected P&L statement.

B) What is the group’s base projected P&L statement?

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

Reference no: EM13863588

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