Question
Based on the expense information below how do I figure out the break even, total fixed costs, total income for each procedure, variable costs dependent
Based on the expense information below how do I figure out the break even, total fixed costs, total income for each procedure, variable costs dependent upon volume?
The organization is purchasing a robotic surgical machine for the operating room. Listed below is a list of related expenses. Calculate the break-even, total fixed costs, total income for each procedure, variable costs dependent upon volume? How many procedures must be done before the purchase returns a profit?
The assignment provided the total cost but also provided the yearly for both equipment and maintenance, if you chose to use the full cost you have to take all 5 years of maintenance into consideration for the calculation, as well.
Cost $2,000,000.00 ($400,00 fixed costs)
Annual Maintenance $15,000.00
Insurance Reimbursement $5,000.00 ave per procedure
Patient Co-pay $750.00
Patient Supplies per price $350.00 "Selling" Prices
Staffing cost per procedure $275.00
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