Problem $9\mathrm{.}12$ Calculating break$-$even volume. Monica Lee, Digital Imaging Center Part a Part b Part c Part d Givens: Dollars No$.$ Dollars No$.$ Dollars No$.$ Dollars No$.$ A Reimbursement per mammography $$105\mathrm{.}00$ $$105\mathrm{.}00$ $$85\mathrm{.}00$ $$105\mathrm{.}00$ B Equipment lease per month per machine$$15,0002$ $$15,0002$ $$15,0002$ $$15,0002$ C Intentionally left blank D Technologist cost per mammography $$45\mathrm{.}002$ $$45\mathrm{.}002$ $$45\mathrm{.}002$ $$45\mathrm{.}002$ E Technologist aide cost per mammography$$0\mathrm{.}000$ $$0\mathrm{.}000$ $$0\mathrm{.}000$ $$30\mathrm{.}001$ F Variable cost per mammography $$15\mathrm{.}00$ $$15\mathrm{.}00$ $$15\mathrm{.}00$ $$15\mathrm{.}00$ G Monthly maintenance per machine $$10,0002$ $$10,0002$ $$10,0002$ $$10,0002$ H Indirect costs $$0\mathrm{.}00$ $$0\mathrm{.}00$ $$0\mathrm{.}00$ $$0\mathrm{.}00$ I Desired profit $$0\mathrm{.}00$ $$5,000\mathrm{.}00$ $$0$ $$0\mathrm{.}00$ a$.$ Solve for monthly volume to break even: Variable Total Indirect Desired Price Volume Cost per Unit Volume Fixed Cost Costs Profit $($A$)?($D $+$ E $+$ F$)?($B $+$ G$)($H$)($I$)$ Setup: $$105\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000+$ $$0+$ $$0$ Solution: $$105\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000$ $$0+$ $$0$ x Volume $=$ Volume $=$ b$.$ Solve for monthly volume needed to break even at desired profit level: Variable Total Indirect Desired Price Volume Cost per Unit Volume Fixed Cost Costs Profit $($A$)?($D $+$ E $+$ F$)?($B $+$ G$)($H$)($I$)$ Setup: $$105\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000+$ $$0+$ $$5,000$ Solution: $$105\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000$ $$0+$ $$5,000$ x Volume $=$ Volume $=$ c$.$ Solve for volume needed to break even at new charge and no profit: Variable Total Indirect Desired Price Volume Cost per Unit Volume Fixed Cost Costs Profit $($A$)?($D $+$ E $+$ F$)?($B $+$ G$)($H$)($I$)$ Setup: $$85\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000+$ $$0+$ $$0$ Solution: $$85\mathrm{.}00$ x Volume $=$ $$60\mathrm{.}00$ x Volume $+$ $$50,000$ $$0+$ $$0$ x Volume $=$ Volume $=$ d$.$ Solve for volume needed to break even with additional labor cost Variable Total Indirect Desired Price Volume Cost per Unit Volume Fixed Cost Costs Profit $($A$)?($D $+$ E $+$ F$)?($B $+$ G$)($H$)($I$)$ Setup: $$105\mathrm{.}00$ x Volume $=$ $$90\mathrm{.}00$ x Volume $+$ $$50,000+$ $$0+$ $$0$ Solution: $$105\mathrm{.}00$ x Volume $=$ $$90\mathrm{.}00$ x Volume $+$ $$50,000+$ $$0+$ $$0$ x Volume $=$ Volume $=$ Notes:Since the technologist aide is presented as a variable cost, the only difference in the setup of this problem and part a is raising the variable cost by the amount of the technologist aide per mammography. These calculations are based on a per machine basis because all costs are equal, but total break$-$even volumes are spread across both macines.