Break Even Excel Template

© 2015 Laureate Education, Inc. Page 1 of 1 Health care Financial Management and Economics Week 8 Assignment 2 — Gulf Imaging Center Assignment 2: Break -Even Point Formulas Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially p rofitable. 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 Gulf Ima ging Center and calculate break -even points. Scenario: Gulf Imaging Cen ter 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 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 follow ing : Reimbursement per screen $140 Equipment lease per month ($ 12,0 00 per machine) $24,000 Technologists costs per mammography $35 Technologists aide per mammography $20 Variable cost per mammography $13 Equipment m aintenance per month ($9,000 per machine) $18,000 To prepare for the Assignment: Examine the Gulf 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 a dditional guidance. The Assignment: Given the above information, us e the “Week 8 Assignment 2 Break Even Excel Template” to answer these items as a Department : A. Solve for monthly volume to break even. B. Solve for monthly volume needed to break even at desired $5 ,000 per month profit level. C. Solve for volume needed to break even at new reimbursement of $110 per screen and no profit. D. Solve for volume needed to break eve n with an additional technologist . Your Assignment is due by Day 7 of Week 8 .