Revenue

5.3 Assume that the radiologist throng practice has the following conjure up structure: Fixed Costs $500,000 Variable equal per office 25 Charge (gross) per procedure 100 Furthermore, assume that the free radical expects to perform 7,500 procedures in the coming year. -Construct the groups rear end contingency projected put on and loss statement. agree tax ($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 mete? What is its breakeven argue?

Contribution margin: $75x7500= $562,500 which is sufficient to unfold the clinics fixed cost of $500,000 and set up a (562,500-500,000) = $62,500 Profit. Breakeven point: Net income (profit) = revenue fixed costs- var. costs 0 = 7 50,000 500,000- 187,500 c) What spate 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 enactment the base case situation Revenue and Costs $ ________________________________________ 66678,000 9,333 mountain (Number of Visits) Profit below 6667 is a loss 500,000 / 75 e)...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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