Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the example of From the Front Lines in Chapter 6 of your text, calculate the break even for the number of procedures. Use an

Using the example of From the Front Lines in Chapter 6 of your text, calculate the break even for the number of procedures. Use an electronic spreadsheet to show how you computed the break even and embed the spreadsheet in your paper. Discuss the impact of the various reimbursements (e.g., Medicare, Medicaid, private, or self-pay). Think about your upcoming capital proposal and how you might use the break-even analysis in your Capital Investment Plan Proposal. Your paper should be one to two double-spaced pages in length. We recently purchased an endoscopic ultrasound (EUS), which allows doctors to examine the linings of the esophagus and stomach, as well as the walls of the gastrointestinal tract. It is a necessary, but expensive, piece of equipment, which cost us $20,000 ($11,000 to purchase, plus $9,000 for renovations). Our fixed costs are four full-time equivalent employees at $336,000. Medicare payments are $885 per procedure, and each procedure requires $175 in average variable costs. It has been estimated that we will complete 500 procedures in the first year and 850 procedures in years 2 to 5.

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

Financial Management Core Concepts

Authors: Raymond Brooks

4th Edition

134730417, 134730410, 978-0134730417

More Books

Students also viewed these Finance questions

Question

Why is rejecting ????0 a reliable decision?

Answered: 1 week ago