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After several years of utilizing the da Vinci robot, new technologies and new equipment have entered the market. The most recent monthly operating expenses for

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After several years of utilizing the da Vinci robot, new technologies and new equipment have entered the
market. The most recent monthly operating expenses for da Vinci were presented:
Table 3
The salaries and wages related to da Vinci surgeries are the support personnel which include RN's, Medical
Assistant's, etc. during the procedure. Employee benefits are related to the support personnel of the da Vinci
procedures. The supply expense - other relates to expenses associated with the surgical procedures done by
the da Vinci but are not directly for the da Vinci equipment itself (sponges, linens, etc.). The lease expense in
the monthly lease for the da Vinci. Maintenance expense is the support agreement to maintain the da Vinci.
Depreciation expenses are for other equipment located within the da Vinci surgery suite. Allocated Hospital
Expenses are fixed overhead expenses that are incurred and would be absorbed by other departments if da
Vinci surgeries did not occur.
For the purposes of the analysis, management has determined the following:
Table 4
Calculate the contribution margin. Be sure to identify the variable versus the fixed expenses and the
determination of variable vs fixed.
Based on the determination you made in the above question, discuss the break-even point in
number of cases per month. What are the implications associated with this number?
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