A cardiac cath lab has the following current date: Revies per Vanco San Poes verhead ES,200 Loan Based on that data, the income statement looks like this KO Van 125.000 Solence was 18.00 Pty for Kad 25 Lewand Total Corte PI 1) Assuming no changes in costs, what is the number of caths needed to reach break-even? Assume management doesn't believe it can add that many caths without bringing on another physician to increase volume. This plan would increase physician fees by $100,000. There would be no increase in overhead, lease and rent, or cost per scan. Salaries and wages would not go up unless the number of caths increases by more than 100; if they go up by more than 100. salaries and wages would go up by $50,000 2) How many caths would be needed to reach break-even undet this plan? 3) How many additional caths (above 500) would cover just the added costs of this plan? In other words, not the amount for the lab to break even but the amount necessary to cover the new costs Suppose management has reached agreements with payers that guarantee 5% increases in the price per cath for the next 5 years They also have in place long term contracts that will limit increases in variable costs, salaries and wages, physician fees and overhead to 2% a year for five years, lease and rent will remain fixed over the five years. 4) Would inflation be enough to bring the lab to a positive bottom line in five years without any other changes? A cardiac cath lab has the following current data: Revenue per cath 1,250 Variable cost per scan 250 Salaries and wages 125,000 Physician fees 225,000 Overhead (utilities, admin, etc. 25,000 Lease and rent 250,000 Number of caths 500 Based on that data, the income statement looks like this: Revenue 625,000 Variable 125,000 Salaries/wages 125,000 Physician fees 225,000 Overhead 25,000 Lease and rent 250,000 Total Costs 750,000 Profit (Loss) (125,000)