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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 Operating Expenses S Avu Salaries and Wages Employee Benefits Supply Expense - da Vinci Supply Expense - Other Lease Expense Maintenance Expense Depreciation Expense Allocated Hospital Expenses S S 5 5 5 5 9,500.00 3,325.00 20,000.00 5,000.00 62,000.00 14,000.00 1,500.00 10,000.00 125,325.00 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 Page 5 of 8 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 Average Cases Per Month Average Revenue per case 12 6,500.00 S 7. Calculate the contribution margin. Be sure to identify the variable versus the fored expenses and the determination of variable vs foed. 8. 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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