Revenue

5.3 Assume that the radiologist group practice has the following appeal structure:
Fixed Costs $500,000
Variable cost per affair 25
Charge (gross) per procedure 100
Furthermore, assume that the group expects to perform 7,500 procedures in the coming year.
-Construct the groups base contingency projected profit and loss statement.
agree revenue ($100x 7,500) = $750,000
add up Variable cost ($25x 7,500) = $187,500
Fixed cost $500,000

totality Rev.- Total var. cost-fixed cost= profit 750,000
- 187,500
Profit =62,500 562,000
-500,000
62,500
b) What is the groups character margin? What is its breakeven argue?




Contribution margin: $75x7500= $562,500 which is sufficient to unfold the clinics fixed costs of $500,000 and provide a (562,500-500,000) = $62,500 Profit.
Breakeven point: Net income (profit) = revenue fixed costs- var. costs
0 = 750,000 500,000- 187,500
c) What volume is undeniable to provide a pretax profit of $100,000? A pretax profit of $200,000?
(100 x vol) (25 x vol) 500,000 = 100,000
(75 x vol) 500,000 = 100,000
75 x vol 600,000/75 = 8,000
Total volume = 8,000

(100 x vol) (25 x vol) 500,000 = 200,000
(75 x vol) 500,000 200,000
75 x vol = 700,000 / 75 = 9333
Total volume= 9333

d) Sketch out a CVP analysis graph depicting the base case situation

Revenue and Costs $

________________________________________

66678,000 9,333 Volume (Number of Visits)
Profit below 6667 is a loss
500,000 / 75
e)...If you deficiency to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .