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You are the business administrator for a small medical practice. You are planning staffing for your day surgery clinic. For the pre-op appointment, you have

You are the business administrator for a small medical practice. You are planning staffing for your day surgery clinic. For the pre-op appointment, you have three options. You can use a Physician's Assistant (PA), a Registered Nurse (RN), or a Licenced Practical Nurse (LPN.) Each has a different legal scope of practice; that is, the part of the job they are legally allowed to do. A Medical Doctor (MD) has to review and/or do the part of the work that cannot be done by the type of Caregiver. You decide to treat the work done by the MD as a Variable Cost. The Annual wage and benefit costs are the Fixed costs. The cost information is found in the table below. You are expecting that you will see 1000 patients annually for the pre-op visit.

Caregiver Fixed Cost (Annual) Variable Cost (per patient)
PA $100,000 $5.00
RN $85,000 $15.00
LPN $68,000 $35.00

Use the table to answer the questions below (1-4).

Please help! I will rate you highly and please show your work!

1a) Produce a crossover chart. This is the graph where you compare the cost of various process choices against the volume produced. The x-axis should have the number of charges. The y-axis should have the total cost. Each of the three options should be on the same graph. The graph should be scaled so it shows the lines cross.

1b) Provide an analysis of the graph.

2a) What is the Breakeven Volume between the PA (option 1) and RN (option 2)?

Express as a whole number.

2b) What is the Breakeven Volume between the RN (option 2) and the LPN (option 3)?

Express as a whole number.

2c) What is the Breakeven Volume between PA (option 1) and the LPN (option 3)?

Express as a whole number.

The "Usual and Customary Charges" for pre-op visits (the amount that insurance will pay the medical facility (your revenue) is $100. Use the table and the information given to answer 3a-3c.

3a) If you decide to hire thePA, what is the volume where your revenue just covers your costs?Express as a whole number.

3b) If you hire theRN, using the data as given, what is the quantity where your revenue just covers your costs? Express as a whole number.

3c) If you hire theLPN, using the data as given, what is the quantity where your revenue just covers your costs?Express as a whole number.

4) Using all of the information and calculations,what option should you select andwhy?Also, pleaseprovide a list ofat least three pieces of non-cost information you would want to collect during this trial year to help make a better decision.

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