Assignment 2: Break-Even Point Formulas

Assignment 2: Break-Even Point Formulas
  • Description

Note: The Instructor will post the document for this Assignment by Day 1 of Week 8.

Before making hiring or purchasing decisions, health care 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 an imaging center and calculate break-even points.

To prepare for this Assignment:

Review the Week 8 Assignment 2 document provided to you by the Instructor. Examine the 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 imaging center scenario and financial data, complete the “Week 8 Assignment 2 Break Even Excel Template”.

To assist with your work related to Week 8 and Assignment #2 specifically, an Excel Tutorial has been provided which is intended to help you navigate the important skill (please check your volume settings). Breakeven Excel Tutorial:

Given the above information, use 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 even with an additional technologist.

Your Assignment is due by Day 7 of Week 8.


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