1. I need to do a case study breakeven analysis on the Midwest Medical Center. As a starting point for the analysis, Davis collected the most recent financial and operating data for the center. Next, Davis met with the center's operational director several times. The primary purpose of the meetings was to estimate the additional costs that would emerge if the center volume increased above the current level of 45. Any incremental usage would require additional expenditures for administrative and medical supplies, estimated to be $5.00 per patient visit for medical supplies (tongue blades, rubber gloves, etc.), and $2.00 per patient visit for administrative supplies (file folders, clinical record sheets, etc.).Because of the relatively low volume level, the urgent care center has purposely been staffed at the bare minimum. In fact, some center employees have started to grumble about not being able to do their jobs properly because of overwork. Thus, any increase in the number of patient visits would require immediate administrative and medical staffing increases. Furthermore, as the number of visits increase, the center would have to hire additional staff members.
2. What is the projected profitability of the urgent care center for the entire year (2020) if volume continues at its current level?
3. How many additional visits per day would be required to break even without the new marketing campaign?
4. How many additional visits per day would be required to break even assuming that the new marketing effort is undertaken?