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: Student Name: Date: Lakeside Hospital Calculation for Various Breakeven Points Oct-Nov 83,904 4,232 3,528 91,664 Variable Costs (Exhibit 2): Medical Supplies Purchased lab services Water use TOTAL Number of treatments Variable Cost per treatment Total Variable Cost 980 180 176811.6 Nursing Salaries Calculation Nurse Salaries (per period) Periods (6) Annual Nursing Salaries $35,000 x 6 $210,000 7 $1,470,000 Annual Salary per nurse (7 nurses) Technician Salaries Calculation Technician Salaries (per period) Periods (6) x Annual Technician Salaries 31,500 6 189000 7 1323000 Annual Salary per Tech (7 techs) Step-Function Costs (in the text): Salaries: Nurses Technicians Employee Expenses (fringe benefits) TOTAL Salaries & Emp. Expense 50% Capacity, no layof 100% Capacity 50% Capacity, w/layof(s) 100% 50% $1,470,000 $735,000 1,323,000 661,500 39,900 19,950 $2,832,900 $1,416,450 50% 735,000 661,500 19,950 1,416,450 45,720 26,250 $2,904,870 22,860 13,125 $1,452,435 22,860 13,125 1,452,435 6 3 3 Fixed Costs (given in text): Administrative expenses Allocated expenses TOTAL Step-Function and Fixed Costs: BreakEven Dec-Jan Feb-Mar Apr-May Jun-Jul Aug-Sep Total 81,800 81,810 81,612 82,400 82,280 493,806 4,052 4,000 3,988 4,084 4,120 24,476 3,480 3,456 3,440 3,496 3,496 20,896 89,332 89,266 89,040 89,980 89,896 539,178 956 183 174479.56 944 185 174413.44 940 185 174182 956 183 175129.64 Show Break Even Calculations below: Formula: px = a + bx px-bx=a 1,050,032.16x-539,178x=2,904,870 510,854x=2,904,870 x= 6 1,050,032.16x-539,178x=1,452,435 510,854x=1,452,435 x=3 1,050,032.16x-539,178x=1,452,435 510,854x=1,452,435 x=3 960 5,736 183 183 175996.8 1050032.16 Student Name: Date: Lakeside Hospital Calculation for Various Breakeven Points Oct-Nov 83,904 4,232 3,528 91,664 Variable Costs (Exhibit 2): Medical Supplies Purchased lab services Water use TOTAL Number of treatments Variable Cost per treatment Total Variable Cost 980 180 176811.6 Nursing Salaries Calculation Nurse Salaries (per period) Periods (6) Annual Nursing Salaries $35,000 x 6 $210,000 7 $1,470,000 Annual Salary per nurse (7 nurses) Technician Salaries Calculation Technician Salaries (per period) Periods (6) x Annual Technician Salaries 31,500 6 189000 7 1323000 Annual Salary per Tech (7 techs) Step-Function Costs (in the text): Salaries: Nurses Technicians Employee Expenses (fringe benefits) TOTAL Salaries & Emp. Expense 50% Capacity, no layof 100% Capacity 50% Capacity, w/layof(s) 100% 50% $1,470,000 $735,000 1,323,000 661,500 39,900 19,950 $2,832,900 $1,416,450 50% 735,000 661,500 19,950 1,416,450 45,720 26,250 $2,904,870 22,860 13,125 $1,452,435 22,860 13,125 1,452,435 6 3 3 Fixed Costs (given in text): Administrative expenses Allocated expenses TOTAL Step-Function and Fixed Costs: BreakEven Dec-Jan Feb-Mar Apr-May Jun-Jul Aug-Sep Total 81,800 81,810 81,612 82,400 82,280 493,806 4,052 4,000 3,988 4,084 4,120 24,476 3,480 3,456 3,440 3,496 3,496 20,896 89,332 89,266 89,040 89,980 89,896 539,178 956 183 174479.56 944 185 174413.44 940 185 174182 956 183 175129.64 Show Break Even Calculations below: Formula: px = a + bx px-bx=a 1,050,032.16x-539,178x=2,904,870 510,854x=2,904,870 x= 6 1,050,032.16x-539,178x=1,452,435 510,854x=1,452,435 x=3 1,050,032.16x-539,178x=1,452,435 510,854x=1,452,435 x=3 960 5,736 183 183 175996.8 1050032.16