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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
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? CStep by Step Solution
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