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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

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

To prepare for the Assignment:

Examine the Pacific Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

The Assignment:

Given the above information, use the Week 8 Assignment 2 Break Even Excel Template to answer these items as a Department:

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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