What is your interpretation of the break-even analysis?
tyle=”text-align: justify;”>Cost-Benefit and Breakeven Analysis of Nursing Budget
Break-even Analysis Assignment
GUIDELINES
Purpose
The purpose of this assignment is to provide learners with the opportunity to develop break-even-analysis skills.
REQUIREMENTS:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document,with the heading of Week 6Assignment. For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all your work and follow the format that has been provided for the calculations in the lesson for Week 6.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleagues business partners have decided to establish an outpatient fertility clinic in your service area. All of you are very familiar with this patient population base, have completed an extensive market analysis that demonstrated a great need for the service, and are comfortable with setting up a business and the costs associated with this special group of patients.
The outpatient fertility clinic will have a fixed cost of $9,788,000 —start-up costs, hiring of specialty physicians, anesthesiologists, advanced practice nurses and staff nurses, salaries, purchase of high-technology fertility equipment, and other miscellaneous items.
The fertility clinic will be open Monday through Saturday; 312 days per year.
The fertility outpatient clinic has variable costs of $500 per patient visit —fertility medical equipment, oxygen supplies, and other miscellaneous items.
Each patient will be charged the following per visit based on patient acuity categories:
1. Simple 15% = $2,000
2. Moderate 60% = $6,500
3. Complex 25% = $10,000
The projected patient visits per year are anticipated to be 7,488 visits. How many patients would the clinic have to provide services for to break even, and at what point would this occur?
What is your interpretation of the break-even analysis? Is this project a viable and profitable service? Does the break-even analysis support moving forward with this business? Why, or why not?
Is this your assignment or some part of it?
We can do it for you! Click to Order!
