What is the group contribution margin and breakeven point

Assignment Help Financial Management
Reference no: EM13947269

Assume the radiology group practice has the following cost structure: Fixed costs = $500,000 Variable cost per procedure = $25 Charges (revenue) per procedure = $100 the group expects to perform 7500 procedures next year. A. Construct a group’s base projected P&L statement B. What is the group’s contribution margin? What is its breakeven point? C. What is the volume required to provide pretax profit of $100,000? D. Assume the practice contracts with an HMO and the plan purposes a 20% discount from charges. Construct the new P&L. What is the breakeven point?

Reference no: EM13947269

Questions Cloud

Most important operating expenses : One of the most important operating expenses for the Olde Virginia Brick Company is natural gas, which is used to bake and dry the bricks. Natural gas prices have recently been quite volatile, now approaching $6 per mcf. Olde Virginia is bidding on a..
Explain effect of each transaction on accounting equation : Calculate the profit on sale. Explain the effect of each transaction on the accounting equation. Prepare a spreadsheet summarising the transactions.
Prepare uml collaboration diagrams using microsoft visio : Paste your diagrams into a collaboration design and description document in Microsoft Word and add a thorough description of your diagrams.
Gain from a one-year project is uniformly distributed : The gain from a one-year project is uniformly distributed between -$2 million and +$8 million. What is the one-year 99% value at risk? What is the one-year 99% expected shortfall?
What is the group contribution margin and breakeven point : Assume the radiology group practice has the following cost structure: Fixed costs = $500,000 Variable cost per procedure = $25 Charges (revenue) per procedure = $100 the group expects to perform 7500 procedures next year. Construct a group’s base pro..
Introduce the client''s situation and identify the problems. : Prepare a formal use case narrative. This narrative should use a formal use case format and integrate the narrative into the use cases as suggested by agile development and other literature
System will be depreciated straight-line to zero : Your firm is contemplating the purchase of a new $630,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $70,000 at the end of that time. You will save $260,000 before..
Evaluate the introduction or literature review : Include the following information in your summary and critique of the journal article: Evaluate the Introduction/Literature Review. Comment on the statement of the research problem, question or hypothesis; organization, flow and content of the liter..
The net profit to a holder of a call option : The net profit to a holder of a call option, with a strike price of $1.540/British pound, premium that he paid of $.010 and spot rate of $1.510/ British pound is? The AUS$ spot rate is US$.8203/AUS$. The 9month forward rate is US$.8460/AUS$. What is ..

Reviews

Write a Review

Financial Management Questions & Answers

  Before-tax operating costs problem

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  Use time value of money

A town has to resurface a section of its roads. There are two options: gravel or going through another company that uses another surfacing technique. The gravel has an initial cost of $200,000 to put down and it costs $15,000 to grade the road on an ..

  All debt all equity income available for asset funders

You are considering a stock investment in one of two firms (All Debt, Inc., and All Equity, Inc.), both of which operate in the same industry and have identical operating income of $10.00 million. All Debt All Equity Income available for asset funder..

  What is maximum before-tax payment-firm is willing to make

Your firm wants to lease a $500,000 piece of equipment. The equipment has a 5-year life and a salvage value of $100,000 at the end of year 5.Depreciation is straight-line over 5 years to a zero book value. There will be 5 pre-paid lease payments on t..

  What is the npv for this project and should company accept

A corporation has $500,000 in bonds outstanding with a 5% annual coupon rate, 15 years to maturity, a $1,000 face value, and a $890 market price. The company’s 5,000 shares of common stock sell for $20 per share and have a beta of 2.5. The risk free ..

  What is the company net income

The Moore Corporation had operating income (EBIT) of $350,000. The company's depreciation expense is $70,000. Moore is 100% equity financed, and it faces a 35% tax rate. What is the company's net income?

  Expected to pay the dividends

Lohn Corporation is expected to pay the following dividends over the next four years: $17, $13, $11, and $6.50. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 1..

  What does the term independent director mean

what does the term 'independent director' mean and should specific board positions be held by independent directors (eg Chairman). If so, why? If not, why not?

  What is the price per share of the companys stock

Ward Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $185,000, $125,000, and $135,000, respectively. What is the price per share of the company's st..

  Assuming it must issue new stock to finance capital budget

Assume that you are an intern with the Nicholas Enchilada's Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.50 a share; What is the firm's W..

  About to retire and he wants to buy an annuity

Your uncles is about to retire and he wants to buy an annuity that will provide him with $62000 of income a year for 20 Years, with the first payment coming immediately. The going rate on such annuites is 5.25%. How much would it cost him to buy the ..

  Financial department of delphi consolidated industries

The financial department of Delphi Consolidated Industries (DCI) is just starting a 2-week retreat in the Canadian wilderness. The president of DCI has been approached by an investment banker who has acquired $1,000,000 in DCI bonds in one of his dea..

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