Reference no: EM131157581
Break-Even Point Gulf Imaging Center
Givens:
A. Reimbursement per mammography
B. Equipment cost per month per machine
C. Intentionally left blank
D. Technologist cost per mammography
E. Technologist aide cost per mammography
F. Variable cost per mammography
G. Monthly maintanence per machine
H. Indirect costs
I. Desired profit
a. Solve for monthly volume to break even:
b. Solve for monthly volume needed to break even at desired profit level:
c. Solve for volume needed to break even at new charge and no profit:
d. Solve for volume needed to break even with additional labor cost
Note: Since the Technologist Aide is presented as a variable cost, the only difference in the setup of this problem and Part A is raising the variable cost by the amount of the Technologist Aide per mammography.
Assignment : Break-Even Point Formulas
Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from the Gulf Imaging Center and calculate break-even points.
Scenario: Gulf Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hernandez has been asked to determine if it is financially profitable to hire an additional technologist to their current staff of two technologists. She has analyzed the current costs and determined the following:
The Assignment:
Given the above information, use the 2 Break Even Excel Template" to answer these items:
A. Solve for monthly volume to break even.
B. Solve for monthly volume needed to break even at desired $3,000 per month profit level.
C. Solve for volume needed to break even at new reimbursement of $110 per screen and no profit.
D. Solve for volume needed to break even with the addition of an aide for the technologists.
Attachment:- Ratio Template.rar
Attachment:- Assignment 2 Break-Even Point Formulas.rar
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