Assume that a radiologist group practice has the following coststructure:Fixed costsVariable cost per procedureCharge (revenue) per procedure$500,00025100Furthermore, assume that the group expects to perform 7,500 proce-dures 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 breakevenpoint?c. What volume is required to provide a pretax profit of $100,000? Apretax profit 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 theplan proposes a 20 percent discount from charges. Redo questionsa, b, c, and d under these conditions.

The objective of the question is to understand the financial performance of a radiologist group…

Answered: Assume that a radiologist group…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Novello Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $350,100 Depreciation expense 63,100 Utilities 36,700 Nurse salaries 525,800 Technician wages 172,300 Total operating room overhead $1,148,000 The overhead costs will be assigned to procedures based on the number of surgical room hours. Novello Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Compute the estimated number of operating room hours for the year. hours b. Determine the predetermined operating room overhead…
please help, project management, I need part E and 2 please help, project management 1) Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV=$22,000 EV=$20,000 AC=$25,000 BAC=$120,000 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? Show your calculations. b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain. c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain. d) Use the SPI to estimate how long it will take to finish this project. e) Sketch the earned value chart for this project. 2) Write a one-page summary explaining how is project cost management different when using an Agile approach?…
Revenue per Unit $10.00 Commission (variable cost) $1.00 Fill in highlighted cells while including formulas used. 1) What is the contribution margin per unit? 2) What is the break even point per month? 3) With salary of $4,000/month, what is the break even point?
Below are the projected revenues and expenses for a new clinical nurse specialist program being established by a hospital. Nurses would provide education while the patient is in the hospital and home visits after patient discharge on a fee-for-service basis. Should the hospital undertake the program if its required rate of return is 12%? Year 1 Year 2 Year 3 Year 4 Total Revenue costs 100,000 150,000 200,000 250,000 700,000 150,000 150,000 150,000 150,000 600,000 (50,000) 0 50,000 100,000 100,000
Below is a project WBS with cost apportioned by percent. If the total project cost is estimated to be $650,000, what are the estimated costs for the following deliverables? (Round the final answers to the nearest dollar.) Definition 10% Router systems project $650,000 Implementation 47% Objectives Requirements Inputs Outputs Files Interfaces Programming In-house testing Customer testing and review 3% 7% 3% 4% 5% 9% 22% 38% 9% a. Design? b. Programming? C. In-house testing? Design 43%
28. If a company follows target costing approach, and normally expects a markup on cost of 20% and estimates that a new product will sell successfully at a price of OMR 60, then the maximum cost of production should be _______ a. OMR 50 b. OMR 120 c. OMR 20 d. OMR 10
5.4General 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 The hospital expects to have a patient load of 15,000 inpatient days next year. a.Construct the hospital’s base case 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? d.Now assume that 20 percent of the hospital’s inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?
Given the cost formula, Y = $16,000+ $3.40x, total cost for an activity level of 4,000 units would be: A. $13,600 OB. $3,600 C. $29,600 O D. $16,000
Explain points the estimator must take into consideration when preparing for an upcoming project If the daily production rate for a crew that works in activity is 200 units/day and the total crew cost per day is 150 $. The material unit cost is 3 $. - Calculate the time and cost it takes the crew to finish 2100 units -Calculate the total unit cost.
. Given the following information of a three-year IT project of Muscat Solutions LLC. Calculate cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI) for the given project. Justify the results. Planned Value, PV = $ 43000 Earned Value, EV = $ 27000 Actual Cost, AC = $ 65000
Q.Using an activity-based costing approach to cost analysis, calculate the budgeted cost of each program and the budgeted cost per patient-year of the drug program.
The variable cost was 5.40 fixed cost was 1500

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