Assumptions needed for this assignment:

Assumption: all nurses are paid equally Assumption: all technicians are paid equally

Assumption: assume that employee expenses are distributed to all employees evenly(Real-world, we would have this explicit information)

1. Determine the Annual Salaries per Nurse and the Annual Salaries per Tech

2. Calculate the Break Even Point at 100% capacity

3. Calculate the Break Even Point at 50% capacity without layoffs

4. Calculate the Break Even Point at 50% capacity with layoffs (you will need to make this managerial decision.

\fLakeside Hospital Calculation for Various Breakeven Points Student Name: Date: Variable Costs (Exhibit 2): Medical Supplies Purchased lab services Water use TOTAL Number of treatments Variable Cost per treatment Total Variable Cost Nursing Salaries Calculation Nurse Salaries (per period) Periods (6) Annual Nursing Salaries x Annual Salary per nurse (7 nurses) Technician Salaries Calculation Technician Salaries (per period) Periods (6) x Annual Technician Salaries Annual Salary per Tech (7 techs) Step-Function C 100% Capacity 50% Capacity, no layof Salaries: Nurses Technicians Employee Expenses (fringe benefits) TOTAL Salaries & Emp. Expense 50% Capacity, w/layof(s) - Fixed Costs (given in text): Administrative expenses Allocated expenses TOTAL Step-Function and Fixed Costs: BreakEven - Author: You willBreak have to utilize Show Even Calculations your judgement in order Formula: px = a + bx to determine if and how many layoffs may be necessary in order to BE and still support your patient care. below: ns below: