Create groups base case projected profit and loss statement

Assignment Help Finance Basics
Reference no: EM13477066

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

Further more, assume that the group expects to perform 7,500 procedures in the coming year.

a. Construct the group's base case projected profit and loss statement.

b. What is the group's contribution margin? What is its breakevenpoint?

c. What volume is required to provide a pretax pro?t of $100,000? A pretax proit of $200,000?

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

e. Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges.

Reference no: EM13477066

Previous Q& A

  Prepare a business plan for a start-up company which plans

develop a business plan for a start-up company that plans to sell a product or service in a local market in a national

  What issues are probable to arise in a developing country

what issues are likely to arise in a developing country when a global giant like coca-cola begins operations there?

  Discuss the relative emphasis which would be placed on

discuss the relative emphasis that would be placed on advertising or personal selling in each of the following

  As assistant to the cfo of boulder inc you should estimate

as assistant to the cfo of boulder inc. you must estimate the year 1 cash flow for a project with the following data.

  Find the fee schedule for these services suppose that goal

the audiology department at randall clinic offers many services to the clinics patients. the three most common along

  Francis incs stock consists of a required rate of return of

francis inc.s stock has a required rate of return of 10.25 and it sells for 57.50 per share. the dividend is expected

  Find dollar allocation to each patient service department

assume that the three patient services departments are adult services revenue and hours of housekeeping services for

  Qualcomm incs stock currently sells for 3525 per share the

qualcomm inc.s stock currently sells for 35.25 per share. the dividend is projected to increase at a constant rate of

  The companys beta is 125 the required return on the market

schnusenberg corporation just paid a dividend of d0 0.75 per share and that dividend is expected to grow at a constant

  Sppose that base case forecast is 10000 visits find the

revenue 10000 visitsnbspnbspnbsp 400000wages and benefitsnbspnbspnbspnbspnbspnbspnbspnbsp


Write a Review


Similar Q& A

  Calculate the value of a share of amazon stock

If Amazon hits the sales and profit margin targets given, what will its net profit be in 2013? Do not round this answer.

  A company just issued at 320 cumulative preferred stock at

a company just issued at 3.20 cumulative preferred stock at a price to the public of 30 a share. the flotation costs

  What was the addition to nwc

If the net fixed assets increased by $26,000 during the year, what was the addition to NWC?

  Generally speaking many companies are interested in the

generally speaking many companies are interested in the potential cost savings of using the same product and

  Effectiveness of capital asset pricing model

Write down an essay regarding the utility of CAPM. Illustrate the CAPM equation, then critically discuss the strengths, weaknesses

  On initiating or expanding business in a particular

on initiating or expanding business in a particular country or region of the world. describe the strategyies used to

  Estimate marpor value without leverage

As a result, Marpor's expected free cashflows with debt will be only $15 million per year. SupposeMarpor's tax rate is 35%, and the beta of Marpor's freecash flows is 1.10 (with or without leverage).

  Discuss the liability of each party and the potential amount

Upon graduation from college, Bob, Carol, Ted, and Alice formed Kotaku, LP, a limited partnership, to distribute video gaming software over the Internet. Bob and Carol each contributed $50,000 and became the general partners.

  What would explain the change

A senior executive in the company believes that 1 million candy bars will indeed be sold, but lowers the estimate of incremental revenue to $700,000. What would explain the change?

  What are risks and rewards associated with security

Discuss the various types of bonds and how they are used to raise funds by public and private institutions and why is each type of security used, and what are the risks and rewards associated with a particular security?

  What is connors current stock price

Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. Connors' required return (rs) is 12%. What is Connors' current stock price?

  What is the initial cash flow for this investment

The cost of the machine was $2,150,000 but they spent $200,000 investigating whether or not there would be business for this type of locking system before they decided to evaluate this new investment. The machine cost $250,000 to make it ready for..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd