Attached is the instructions on the paper and I've also attached references to cite as some sources as well. https://saylordotorg.github.io/text_small-business-management-in-the-21st-century/s13-02-fi
Instructions
You are an intern in a health care organization business office. Find an example of an income statement for a health care organization online and using the resources you have been provided under course content, please develop a 4-6 page paper responding to the following questions regarding the income statement:
What is an income statement used for?
What are the key components of an income statement?
On your example of an income statement, is the organization making a profit or loss? How much is that profit or loss? Show the calculations. (Total Revenues – Total Expenses = Net Profit/Loss)
On your example of an income statement, what is the “total contribution margin”? Show the calculations. (Net Sales – Total Variable Costs=Total Contribution Margin). You can use the assumption that volume is 15,000 if not included in financial statements.
What three financial indicators does a contribution margin help determine? How?
What is a break-even analysis? What is the break-even point for this organization? List expenses assigned as variable and fixed. Show the calculations. (Total revenues - Total VC – Total FC= Profit)
How does a break-even analysis vary between fee-for-service and capitated payments? Explain it using the income statement you chose. What are the similarities and differences applicable to the Income statements in fee-for-service and capitated payment options?
The paper should not be more than 6 pages and should follow APA format, spelling and grammar. Include a cover page and reference page (not included in the page count). Make sure to properly cite and reference all the used sources. The calculations need to be shown as formulas using figures. Follow the mathematical rules while calculating numbers.
Please calculate your contribution margin and break-even analysis in the following manner:
Contribution Margin = (Total Revenue/15000 units) - (Total Variable Cost/15000 units)
Break-even Point = Fixed Cost/Contribution Margin
The contribution margin will tell you how much revenue remains to pay your fixed cost for the organization at a unit of service level. The break-even point tells you how many units of service you would need to provide where the organization is not making a profit, and it is not incurring a loss.
*I’ve also attached some sources to use as references*
