Break-Even Point:

Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions.

For this Assignment, you use data from the NW Imaging Center and calculate break-even points.

Scenario: PI Center is a small imaging center with two analog film or screen units. As the director of the center, you have been asked to determine if it is financially profitable to hire additional technologists to their current staff of two technologists. You have analyzed the current costs and determined the following:

Reimbursement per screen $75

Equipment costs per month ($800 per machine) $1,600

Technologists' costs per mammography $20

Technologists aide per mammography $4

Variable cost per mammography $10

Equipment maintenance per month per machine $700

Examine the scenario. Reflect on how you will use the provided financial data to calculate break-even points. Given the above information:

A. Solve for monthly volume to break even.

B. Solve for monthly volume needed to break even at desired $5,000 per month profit level.

C. Solve for volume needed to break even at new reimbursement of $55 per screen and no profit.

D. Solve for volume needed to break even with an additional technologist.