Prepare an Excel Spreadsheet to display, calculate and check your answers.

1. A plastic surgery center performs a procedure whose gross charge is $7,000 of which $3,500 is collected. The variable cost per procedure is $1,500. The monthly fixed cost assigned to doing this procedure is $33,000. The center wants to generate a $27,000 profit each month in doing this procedure.

a. How many procedures per month, rounding up to the next highest whole number if necessary, would it need to do to achieve its profit target?

b. How many procedures per month, rounding up to the next highest whole number, would it need to perform to break even?

c. On your Excel spreadsheet note the algebraic formula you used to solve these two problems. Using the Excel skills developed in the program so far, make your spreadsheet so that it prints on one page, and is readable. Use virtual cell references so that your work can be easily adapted to test other assumptions. Label each tab. Put your name in a footer on each tab. And, include your name in the filename. Use any other formatting features that you feel are appropriate in preparing your spreadsheet.

Note: we are testing three things in these problems: 1. Your understanding cost/volume/profit concepts in a health care setting. 2. Your Quantitative Literacy abilities to solve problems. 3. Your use of Excel as a tool for calculations and communicating information.