Monica Lee, administrative director of Digital 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 digital units and two technologists. She has compiled the following information:

Reimbursement per mammography	$140
Equipment lease per month per machine	$12,000
Equipment maintenance per month per machine	$9,000
Technologist cost per mammography	$35
Technologist aide per mammography	$20
Variable cost per mammography	$13

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

b. What is the patient volume needed per month if Digital Imaging Center desires to cover its fixed and variable costs and make a $3,000 profit on this equipment to cover other costs associated with the organization?

c. If reimbursement decreases to $110 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 costs but not profit?

Answer rating: 100% (QA)

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