break even analysis, Business Management

Assignment Help:
4.Laurie Vaden is a nurse practitioner with her own practice. She has developed contracts with several large employers to perform routine physical, fitness for duty exams, and initial screening of on-the-job injuries. She currently sees 150 per month, charging 450 per visit. Her total costs are $7,500, of which $1,500 is for supplies. She has decided that she needs to increase profit, so she is considering raising her fee to $65. She expects to lose 10 percent of her business to competitors that charge an average of 460 per visit. Determine her current and predicted: 1) revenues, 2) variable costs, and 3) total contribution margin. What do you recommend she do? Why?
5.Janet Gilbert is director of labs. She has some extra capacity and has contracted with some small neighboring hospitals to run some of their lab tests. She has recently had a study conducted and has determined that her costs of these contracts are $10,000 of which $7,000 are for supplies and items related to each test. She currently charges an average of $10,00 per lab test. She is thinking of lowering her price by 20 percent in hopes of raising her current volume of 10,000 tests by 15 percent. Determine her current and predicted: 1) revenues, 2) variable costs, 3) total contribution margin, and 4) net income. What do you recommend she do? Why?
6.Shady Rest Nursing Home has 100 private pay residents. The administrator is concerned about balancing the ratio its private pay to non-private pay patients. Non-private pay sources reimburse an average of $100 per day whereas private pay residents pay average 100 percent of full daily charges. The administrator estimates that variable cost per resident per day is $25 for supplies, food, and contracted services and annual fixed costs are $4,562,500. ?What is the daily contribution margin of each non-private pay resident?
?If 25 percent of the residents are non-private pay, what will shady Rest charge the private pay patients in order to break even?
?What if non-private pay payors cover 50 percent of the residents?

7.The owner of Shady Rest Nursing Home insists that the facility earn $80,000 in annual profits. How much must the administrator raise the per day charge for the privately insured residents if 25 percent of the residents are covered by non-private pay payors?


Related Discussions:- break even analysis

Left or Right, if you were one of the other foremen, what could you do to m...

if you were one of the other foremen, what could you do to make rajinder?s transition easier?

Logical analysis of daily business, Jane Parton, the proprietor of Deli Pa...

Jane Parton, the proprietor of Deli Parton, sells specialty breads for $3.95 each.  She buys these from a baker-supplier for $2.45 per unit. Since Jane wants to maintain Deli Pa

CASE STUDY, It goes by many terms - information overload, analysis paralysi...

It goes by many terms - information overload, analysis paralysis, data dumping, and so on. You know what we''re talking about. It is indeed greater to live in the information age w

What do you understand by the term viral marketing, QUESTION a) Top Mob...

QUESTION a) Top Mobile Company ltd deals in mobile phones. For the last two years, the company has been using traditional marketing tools like newspapers, pamphlets and radio t

Illustrate the optimism and leadership of an entrepreneur, Illustrate the O...

Illustrate the Optimism and Leadership of an entrepreneur? Optimism and Leadership of an entrepreneur: Optimism: They are highly optimistic regarding achieving their visio

Importance of materials handling, Importance of Materials Handling It...

Importance of Materials Handling It is hard to  realized how  important are material handling in the  cost  of operation because it is  something  that is  quite  common  to

Strategies for successfully using communication technology, QUESTION 1 ...

QUESTION 1 a) What is communication? b) Discuss four common types of communication barriers c) Explain five strategies for overcoming communication barriers and briefly e

.Bureaucratic Management, whether bureaucratic approach will be appropriate...

whether bureaucratic approach will be appropriate for the organizational performance or not?

A source perspective and a receiver perspective, QUESTION 1 The best in...

QUESTION 1 The best indicator of behaviour is intention. a) Describe the theory you would use to explain the above and explain the importance of this theory. b) Elaborate

Show ways to communicate effectively interculturally, Question 1: (a) D...

Question 1: (a) Describe the two main criteria that have contributed to intercultural communication within the work environment. (b) Clearly show  three challenges and t

Write Your Message!

Captcha
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