Calculating break-even point and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the
Question:
Calculating break-even point and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the next year and is projecting the following cost and rate structure for the service.
a. What volume of patients per month will it take for the center to break even?
b. What is the break-even point in dollars?
c. Graph the above scenario, using a range of 0 to 2,500 patients in 500-patient increments.
d. If the clinic needs to make a profit of $85,000 per month, what is the new break-even point in volume per month?
e. If the clinic needs to make a profit of $85,000 per month, what is the new break-even point in revenue?
Step by Step Answer:
Financial Management Of Health Care Organizations
ISBN: 9781118466568
4th Edition
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas