Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with question 12 (a, b, c, d) from Chapter 9 Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts

image text in transcribed

Please help me with question 12 (a, b, c, d) from Chapter 9

Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications, 5th Edition

isbn 978-1-119-55384-7

12. Calculating break-even volume. Monica Lee, administrative director of Digital Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice's mammography service, which currently has two digital imaging units and two tech- nologists, one per machine. She has compiled the following information: Reimbursement per mammography Equipment lease per month per machine Equipment maintenance per month per machine Technologist cost per mammography Technologist aide per mammography Variable cost per mammography $105 $15,000 $10,000 $45 $30 $15 a. What is the patient volume needed per month to cover fixed and variable costs? b. What is the patient volume needed per month if Digital Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization? If reimbursement decreases to $85 per mammography, what is the patient volume needed per month to cover fixed and variable costs but not profit? d. If a new technologist aide is hired, what is the patient volume needed per month at the original reimbursement rate to cover costs but not profit? C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Advances In Behavioral Research

Authors: Lawrence A. Ponemon, David R.L. Gabhart

1st Edition

0387976191, 978-0387976198

More Books

Students also viewed these Accounting questions

Question

Summarize the primary reasons for using charts and tables.

Answered: 1 week ago

Question

3. List ways to manage relationship dynamics

Answered: 1 week ago