Assume that a radiologist group practice has the following

Question

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?