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Posted: March 1st, 2023

Can you someone please help solve this break even points problem. Thank you

Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from the Atlantic Imaging Center and calculate break-even points.

Scenario: Atlantic Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hernandez has been asked to determine if the current staffing is correct for her department for her place or should she add another technologist. She currently uses 2 mammography units, 2 technologists, and 1 aide. She has analyzed the current costs and determined the following:

To prepare for the Assignment:

Examine the Atlantic Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

The Assignment:

Given the above information, use the “Week 8 Assignment 2 Break Even Excel Template” to answer these items as a Department:

  1. Solve for monthly volume to break even.

  2. Solve for monthly volume needed to break even at desired $5,000 per month

    profit level.

  3. Solve for volume needed to break even at new reimbursement of $104 per

    screen and no profit.

  4. Solve for volume needed to break even with an additional technologist.

Reimbursement per screen

$80

Equipment costs per month ($800 per machine)

$1,600

Technologists costs per mammography

$18

Technologists aide per mammography

$5

Variable cost per mammography

$9

Equipment maintenance per month per machine ($375 per machine)

$750

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