Assumptions Scenario A 10% Increase in the "number of visits per year" 5% decrease in the "per visit revenue fee" 10% increase "Variable Cost per visit" "Fixed Cost Yearly Inflation" is 5%

Scenario B 5% decrease in the "number of visits per year" 10% increase in the "per visit revenue fee" 10% decrease "Variable Cost per visit" "Fixed Cost Yearly Inflation" is 10%

2 Solve for Accounting Breakeven (both scenario A and B) 3 Solve for Economic Breakeven with a $200,000 Profit (both scenario A and B) 4 Solve for Degree of Operating Leverage (both scenario A and B) 5 Solve for Fixed Cost Breakeven 6 Solve for Per visit Revenue Fee Breakeven 7 By Testing each of the variables discuss which variable you believe is the most sensitive to change (hint: which variable has the largest impact on the profit/loss as it moves up or down) jo

Health Care Finance Input Box, Breakeven Analysis Problem 1 Problem 1 Year 1 Input Box \begin{tabular}{|l|rr|} \hline Number Visits per Year & 73,000 \\ Visit Revenue Fee & $ & 120.00 \\ \cline { 2 - 2 } Variable Cost per Visit & $ & 50.00 \\ \hline Fixed Cost Yearly Inflation & & \\ \hline \end{tabular} \# Visits Projected Revenue Variable Costs Fixed Costs Salaries and Benefits Manasement \& Nurses Coordinators Non-Salary Supplies Utilities Total Fixed Costs Total Cest Projected Profit (Loss) Scenario A Year 2 Projected 0 Year 2 FY*F10 Fg*F11 Scenario B Year 2 Projected Year 1 73.000 8,760,000 3,650,000 3.828 .787 648,063 231,184 49.040 4,757074 8. 407074 352,926 Average Cost Per Visit Accounting Volume Breakeven Economic Volume Breakeven - $200,000 Profit Fived Cost Breakeven Degree of Operating Leverage Per Visit Fee Breakeven Variable Cost Breakeven Which Variable is the most sensitive to change Health Care Finance Input Box, Breakeven Analysis Problem 1 Problem 1 Year 1 Input Box \begin{tabular}{|l|rr|} \hline Number Visits per Year & 73,000 \\ Visit Revenue Fee & $ & 120.00 \\ \cline { 2 - 2 } Variable Cost per Visit & $ & 50.00 \\ \hline Fixed Cost Yearly Inflation & & \\ \hline \end{tabular} \# Visits Projected Revenue Variable Costs Fixed Costs Salaries and Benefits Manasement \& Nurses Coordinators Non-Salary Supplies Utilities Total Fixed Costs Total Cest Projected Profit (Loss) Scenario A Year 2 Projected 0 Year 2 FY*F10 Fg*F11 Scenario B Year 2 Projected Year 1 73.000 8,760,000 3,650,000 3.828 .787 648,063 231,184 49.040 4,757074 8. 407074 352,926 Average Cost Per Visit Accounting Volume Breakeven Economic Volume Breakeven - $200,000 Profit Fived Cost Breakeven Degree of Operating Leverage Per Visit Fee Breakeven Variable Cost Breakeven Which Variable is the most sensitive to change