Hello and Happy Easter, I am hoping someone can help me with the following questions, I am running out of time (due at midnight tonight) and I really need help with the following problems:
5.2) Consider the data in the table below for three independent health service organizations:
Revenues Total Variable Costs Fixed Costs Total Costs Profit
a.) $2,000 $1,400 ??? $2,000 ???
b.) ??? 1,000 ??? 1,600 $2,400
c.) 4,000 ??? $600 ??? 400
Fill in the missing data in the chart above.
5.3) Assume that a radiologist group practice has the following cost structure:
Fixed costs $500,000
Variable cost per procedure 25
Charge (revenue) per procedure 100
Furthermore, assume that the group expects to perform 7,500 procedures in the coming year.
a.) Construct the group's base case projected P&L statement.
b.) What is the group's contribution margin? What is its breakeven point?
c.) What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000?
5.4) General Hospital, a not for profit acute care facility, has the following cost structure for its inpatient services:
Fixed costs $10,000,000
Variable cost per inpatient day 200
Charge (revenue) per inpatient day 1,000
a.) Construct the hospital's base care projected P&L statement.
b.) What is the hospital's breakeven point?
c.) What volume is required to provide a profit of $1,000,000? A profit of $500,000?
Thank you for all your help!
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