Reference no: EM131553584

Healthcare Financial Management and Economics

Assignment- Oceans Imaging Center

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 Oceans Imaging Center and calculate break-even points.

Scenario: Oceans 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 addan additional technologistaide to their current staff of two technologists.She has analyzed the current costs and determined the following:

Reimbursement per screen	$130
Equipment lease per month ($11,000 per machine)	$22,000
Technologists costs per mammography	$34
Technologists aide per mammography	$21
Variable cost per mammography	$12
Equipment maintenance per month per machine	$10,000
Indirect Costs	$0

To prepare for the Assignment:

Examine the Oceans Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applicationsfor additional guidance.

The Assignment:

Given the above information, use the "Week 6 Assignment 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 $110per screen and no profit.
D. Solve for volume needed to break even with an additional technologist aide, using part A's data for the conditions.

Attachment:- Template.rar