CASE NOTES:

This spreadsheet contains yearly operating fixed costs & per patient variable costs for three different

MRI Scanning Machine models. A Crossover Point Graph will help to visually determine the correct

choice based on patient counts for $2023.$ Only half the patient counts need to be considered as the

hospital plans to purchase two machines.

Additionally the crossover points need to be calculated algebraically to detemine the exact break even

point for each patient count. Using the exact crossover points comparison to $\frac{1}{2}$ the new $2023$ Patient

Counts, determine which MRI machine is most cost effective.

COMPLETE THE FOLLOWING ANALYSIS:

$-$Detemine total number of patients expected for Year $2023$ based on $12\%$ growth. $($Use your data from

CASE PART ONE.$)$

$-$Calculate $\frac{1}{2}$ the $2023$ patient count.

$($Two machines will be used. Round to nearest whole number of patients.$)$

$-$Graph the cost curves for each of the three machines showing visually the crossover points. Steps

include:

$-$Set up a range of patients from $0$ to $\frac{1}{2}$ of $2022$ Forecast

$-$HINT: Increase by increments of $70$ patients up to $1050$ patients for the best graph!

$-$Set up rows $6$ with formulas calculating the fixed & variable costs totals for each machine type

based on patient count starting at ZERO patients.

$-$Highlight the data & create a line graph showing all three costs curves.

$-$Be sure to change the Chart Title to something meaningful & include a legend.

Mathematically calculate patient crossover points where the total costs are equal for:

$-$Siemens vs$.$ General Electric

$-$Philips vs$.$ Siemens

Indicate which machine brand should be purchased based on future patient forecasts & costs.

NOTE: Cells where formula calculations are required should not be typed in numbers.