Reference no: EM132916443 , Length: 6

You are an intern in a health care organization business office. The calculations can be done for FY 2018 or 2019. Make sure to identify the year you used. Use the Dehew Health System income statement in the attachment, please develop a 4-6 page paper responding to the following questions regarding the income statement:

Question 1. What is an income statement used for?

Question 2. What are the key components of an income statement?

Question 3. On your example of an income statement, is the organization making a profit or loss? How much is that profit or loss? Show the calculations. (Total Revenues - Total Expenses = Net Profit/Loss)

Question 4. On your example of an income statement, what is the "total contribution margin"? Show the calculations. (Net Sales - Total Variable Costs=Total Contribution Margin).

Question 5. What three financial indicators does a contribution margin help determine? How?

Question 6. What is a break-even analysis? What is the break-even point for this organization? List expenses assigned as variable and fixed. Show the calculations. (Total revenues - Total VC - Total FC= Profit)

Question 7. How does a break-even analysis vary between fee-for-service and capitated payments? Explain it using the income statement you chose. What are the similarities and differences applicable to the Income statements in fee-for-service and capitated payment options?