Calculating break-even volume. Jasmine Gonzales, administrative director of Small Imaging Center, has been asked by the...

Calculating break-even volume. Jasmine Gonzales, administrative director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice's mammography service, which currently has two screen units and two technologists. She has compiled the following information:

• Reimbursement per screen: $75

• Equipment costs per month: $1,600

• Technologist cost per mammography: $20

• Technologist aide per mammography: $4

• Variable cost per mammography: $10

• Equipment maintenance per month per machine: $700

a. What is the monthly patient volume needed per month to cover fixed and variable costs?

b. What is the patient volume needed per month if Small Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization?

c. If reimbursement decreases to $55 per screen, what is the patient volume needed per month to cover fixed and variable costs but not profit?

d. If a new technologist aide is hired, what is the patient volume needed per month at the original reimbursement rate to cover variable costs but not profit?

Expert Solution

ekkarill92 answered 1 year ago

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