Pacific Imaging Center
Not what you're looking for?
Healthcare Financial Management and Economics
— Pacific 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 Pacific Imaging Center and calculate break-even points.
Scenario: Pacific 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 additional technologists to their current staff of two technologists. She has analyzed the current costs and determined the following:
Reimbursement per screen $75
Equipment costs per month ($800 per machine) $1,600
Technologists costs per mammography $20
Technologists aide per mammography $4
Variable cost per mammography $10
Equipment maintenance per month per machine $700
To prepare that:
Examine the Pacific 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 Applications for additional guidance.
Given the above information, create an Excel spreadsheet showing the following:
A. Solve for monthly volume to break even.
B. Solve for monthly volume needed to break even at desired $5,000 per month profit level.
C. Solve for volume needed to break even at new reimbursement of $55 per screen and no profit.
D. Solve for volume needed to break even with additional labor.
Purchase this Solution
Solution Summary
Calculation of break even points in different scenarios are examined.
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.