11. What is the new break-even point? 12. Is this a profitable venture for the hospital? If profitable, is it profitable enough? Why or why not? If it is not profitable, should the da Vinci robot be discontinued? Why or why not? This should be a qualitative analysis as well as quantitative.

As part of the overall discussion concerning the da Vinci surgical system, management is contemplating the new technological advances in the system as well as the fact that the existing lease is ending. Given the situation, management is evaluating the current number of procedures, an expansion of the robotic surgical system with addition of an additional surgeon, and the lease for a new system. Page 6 of 8 Table 5 New Robot Cost Cost of Financing Lease Term (Years) Average Cases Per Month Average Revenue per case $ 2,500,000.00 5.2596 4 20 $ 6,500.00