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Question 1 I have been beenaskedbymy directortoseeifitisfeasibletoaddmorestafftosupportthepractice'smammographyservice,whichcurrentlyhastwoanaloguefilmorscreenunitsandtwotechnologists.Shehascompiledthefollowinginformation: Reimbursementperscreen $75 Equipmentcostspermonth $1,600 Technologistcostpermammography $20 Technologistaidepermammography $4 Variablecostpermammography $10 Equipmentmaintenancepermonthpermachine $700 a. Whatisthemonthlypatientvolumeneededpermonthtocoverfixedandvariablecosts? b. WhatisthepatientvolumeneededpermonthifSmallImagingCenterdesirestocoveritsfixedandvariablecostsandmakea$5,000profitonthisequipmenttocoverothercostsassociatedwiththeorganization? c. Ifreimbursementdecreasesto$55perscreen,whatisthepatientvolumeneededpermonthtocoverfixedandvariablecostsbutnotprofit?

Question 1

I have been beenaskedbymy directortoseeifitisfeasibletoaddmorestafftosupportthepractice'smammographyservice,whichcurrentlyhastwoanaloguefilmorscreenunitsandtwotechnologists.Shehascompiledthefollowinginformation:

Reimbursementperscreen $75

Equipmentcostspermonth $1,600

Technologistcostpermammography $20

Technologistaidepermammography $4

Variablecostpermammography $10

Equipmentmaintenancepermonthpermachine $700

a. Whatisthemonthlypatientvolumeneededpermonthtocoverfixedandvariablecosts?

b. WhatisthepatientvolumeneededpermonthifSmallImagingCenterdesirestocoveritsfixedandvariablecostsandmakea$5,000profitonthisequipmenttocoverothercostsassociatedwiththeorganization?

c. Ifreimbursementdecreasesto$55perscreen,whatisthepatientvolumeneededpermonthtocoverfixedandvariablecostsbutnotprofit?

d. Ifanewtechnologistaideishired,whatisthepatientvolumeneededpermonthattheoriginalreimbursementratetocovervariablecostsbutnotprofit?

Question 2

ANursingHomehas140residents.Theadministratorisconcernedaboutbalancingtheratioofitsprivatepaytonon-privatepaypatients.Non-privatepaysourcesreimburseanaverageof$170perday, whereasprivatepayresidentspayonaverage100percentoffulldailycharges.Theadministratorestimatesthatvariablecostperresidentperdayis$90forsupplies,food, andcontractedservices,andannualfixedcostsare$6,500,000.

a. Whatisthedailycontributionmarginofeachnon-privatepayresident?

b. If25percentoftheresidentsarenon-privatepay,whatwillShadyRestchargetheprivatepaypatientstobreakeven?

c. Whatifnon-privatepaypayorscover50percentoftheresidents?

d. TheownerofShadyRestNursingHomeinsiststhatthefacilityearn$1millioninannualprofits.Howmuchmusttheadministratorraisetheperdaychargefortheprivatelyinsuredresidentsif25percentoftheresidentsarecoveredbynon-privatepaypayors?

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