7. Break-even analysis. Assume that all payers pay the same prospective rate for surgery patients in DRG 3 Type of Operation Reimbursement Rate Program-Specific Fixed Costs Variable Costs DRG 3 $1,000 $150.000 $800 "Depreciation on equipment plus salary supplement for program supervision. Supplies, labor, etc. a. What is the break-even volume of patients undergoing the surgery for DRG 3? b. If there are three different types of patients undergoing surgeries, as follows, what would be the break-even point for each DRG? % of Patients in Type of Rate of Reimbursement Program- Variable this DRG Operation Specific Costs Fixed Costs 25 DRG 1 $500 $50,000 $300 35 DRG 2 2000 100,000 1200 40 DRG 3 1000 150,000 800 Joint 500,000 OR overhead 100 Total fixed costs $800,000 c. If only 760 DRG 3 operations will take place, should we discontinue DRG 3 from an economic perspective