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Dr. Jones is deciding on whether to open a Surgery Center. He estimates that the annual Fixed Overhead costs for the center will be 100,000He
Dr. Jones is deciding on whether to open a Surgery Center. He estimates that the annual Fixed Overhead costs for the center will be 100,000He also estimates that he will have $75,000 is fixed staffing costs . Dr. Jones accountant has told him that his variable costs will be $250 per surgical case in staffing costs, plus an additional $75 per case in medical supplies in studying the fee schedules of Medicare and Blue Cross , Dr. Jones feels that he will eam approximately $750 per case based on both the payer and types of procedures he will be performing What is Dr. Jones ' incremental profit per case ? Based on the information given, what volume of cases does Dr. Jones need to have in order to break-even?
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