| Main Street Dental Practice Management Co. | ||
| Income statement for a one-year period from performing management services | ||
| Revenues of the practices | $4,000,000 | |
| Charges for management services: | Cost | Cost-plus @ 10% |
| Sales/marketing | $180,000 | $200,000 |
| Accounting | $72,000 | $80,000 |
| Billings and collections | $144,000 | $160,000 |
| Staffing or human resources | $108,000 | $120,000 |
| Other management services | $36,000 | $40,000 |
| Revenue of the DPM | 600,000 | |
| Less: Operating cost @ 5% of DPM revenue | $30,000 | |
| EBITDA or net income of DPM | $570,000 | |
How to price DPM services in a noncorporate state - Table
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