Question
Break-Even Point Part a. Part b. Part c. Part d. Givens From Problem: Costs Dollars No. Dollars No. Dollars No. Dollars No. A B C
| Break-Even Point | |||||||||||||||||||||
Part a. | Part b. | Part c. | Part d. | |||||||||||||||||||
Givens From Problem: | Costs | Dollars | No. | Dollars | No. | Dollars | No. | Dollars | No. | |||||||||||||
A | ||||||||||||||||||||||
B | ||||||||||||||||||||||
C | ||||||||||||||||||||||
D | ||||||||||||||||||||||
E | ||||||||||||||||||||||
F | ||||||||||||||||||||||
G | ||||||||||||||||||||||
H | ||||||||||||||||||||||
I | ||||||||||||||||||||||
A | B | C | D | |||||||||||||||||||
Reimbursement | Reimbursement | Reimbursement | Reimbursement | |||||||||||||||||||
Per Mammography (P) | ||||||||||||||||||||||
75 | ||||||||||||||||||||||
Fixed Costs | Fixed Costs | Fixed Costs | Fixed Costs | |||||||||||||||||||
Total Fixed Costs (TFC) | Total Fixed Costs (TFC) | Total Fixed Costs (TFC) | Total Fixed Costs (TFC) | |||||||||||||||||||
Variable Costs | Variable Costs | Variable Costs | Variable Costs | |||||||||||||||||||
Variables Costs based on Dollar Amount per Unit | Variables Costs based on Dollar Amount per Unit | Variables Costs based on Dollar Amount per Unit | Variables Costs based on Dollar Amount per Unit | |||||||||||||||||||
Sum: | Sum: | Sum: | Sum: | |||||||||||||||||||
Break-Even Point | Break-Even Point | Break-Even Point | Break-Even Point | |||||||||||||||||||
Break-Even Units (X) | X = TFC / (P - V) | Break-Even Units (X) | X = TFC / (P - V) | Break-Even Units (X) | X = TFC / (P - V) | Break-Even Units (X) | X = TFC / (P - V) | |||||||||||||||
Targeted Profit | Targeted Profit | Targeted Profit | Targeted Profit | |||||||||||||||||||
Targeted Profit (TF) | Targeted Profit (TF) | Targeted Profit (TF) | Targeted Profit (TF) | |||||||||||||||||||
Units required to reach targeted TF, X = (TFC + TF) / (P-V) | Units required to reach targeted TF, X = (TFC + TF) / (P-V) | Units required to reach targeted TF, X = (TFC + TF) / (P-V) | Units required to reach targeted TF, X = (TFC + TF) / (P-V) | |||||||||||||||||||
Scenario: Pacific Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hernandez has been asked to determine if the current staffing is correct for her place or should she add another technologist. She currently uses 2 mammography units, 2 technologists, and 1 aide. She has 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 ($350 per machine) $700
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 $112 per screen and no profit. D. Solve for volume needed to break even with an additional technologist
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