Use the template below.

Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from the Oceans Imaging Center and calculate break even points. Scenario: Oceans Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hemandez has been asked to determine if it is financially profitable to hire additional technologists to their current staff of two technologists. She has analyzed the current costs and determined the following: Reimbursement per screen Equipment lease per month ($11.000 per machine) Technologists costs per mammography Technologists aide per mammography Variable cost per mammography Equipment maintenance per month per machine S130 $22,000 $34 S21 S12 $10,000 To prepare for the Assignment: Examine the Oceans Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break even points. Refer to Chapter 9 of Financial management of health care organizations: An introduction to fundamental tools, concepts and applications for additional guidance. The Assignment: Given the above information, create an Excel spreadsheet showing the following: A. Solve for monthly volume to break even B. Solve for monthly volume needed to break-even at desired S5000 per month profit level C. Solve for volume needed to break-even at new reimbursement per screen of $55 and no profit. D. Solve for volume needed to break-even with additional labor Break-Even Point Part a Part b Part c Part d Givens From Dollars Costs No. Dollars No. Dollars No. Dollars No. Problem A B E F H C D A Reimbursement Reimbursement Reimbursement Reimbursement Per Mammography (P) Fixed Costs Fixed Costs Fixed Costs Fixed Costs Total Fixed Costs (TFC) Total Fixed Costs (TFC) Total Fixed Costs (TFC) Total Fixed Costs (TFC) Variable Costs Variable Costs Variable Costs Variable Costs Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Sum: Sum: Sum: Sum: Break-Even Point Break-Even Units X TFC / (P- V) Break-Even Point Break-Even Units X TFC / (P - V) Break-Even Point Break-Even Units X TFC / (P - V) Break-Even Point Break-Even Units x TFC / (P - V) Targeted Profit Targeted Profit Targeted Profit (TF) Targeted Profit Targeted Profit Targeted Profit (TF Targeted Profit (TF) Targeted Profit (TF) Units required to reach targeted TF, X = (TFC+ TF ) /(P-V) Units required to reach targeted TF, X(TFC TF) (P- V) Units required to reach targeted TF, X = (TFC TF) (P- V) Units required to reach targeted TF, X (TFCTF) (P- V) Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from the Oceans Imaging Center and calculate break even points. Scenario: Oceans Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hemandez has been asked to determine if it is financially profitable to hire additional technologists to their current staff of two technologists. She has analyzed the current costs and determined the following: Reimbursement per screen Equipment lease per month ($11.000 per machine) Technologists costs per mammography Technologists aide per mammography Variable cost per mammography Equipment maintenance per month per machine S130 $22,000 $34 S21 S12 $10,000 To prepare for the Assignment: Examine the Oceans Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break even points. Refer to Chapter 9 of Financial management of health care organizations: An introduction to fundamental tools, concepts and applications for additional guidance. The Assignment: Given the above information, create an Excel spreadsheet showing the following: A. Solve for monthly volume to break even B. Solve for monthly volume needed to break-even at desired S5000 per month profit level C. Solve for volume needed to break-even at new reimbursement per screen of $55 and no profit. D. Solve for volume needed to break-even with additional labor Break-Even Point Part a Part b Part c Part d Givens From Dollars Costs No. Dollars No. Dollars No. Dollars No. Problem A B E F H C D A Reimbursement Reimbursement Reimbursement Reimbursement Per Mammography (P) Fixed Costs Fixed Costs Fixed Costs Fixed Costs Total Fixed Costs (TFC) Total Fixed Costs (TFC) Total Fixed Costs (TFC) Total Fixed Costs (TFC) Variable Costs Variable Costs Variable Costs Variable Costs Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Variables Costs based on Dollar Amount per Unit Sum: Sum: Sum: Sum: Break-Even Point Break-Even Units X TFC / (P- V) Break-Even Point Break-Even Units X TFC / (P - V) Break-Even Point Break-Even Units X TFC / (P - V) Break-Even Point Break-Even Units x TFC / (P - V) Targeted Profit Targeted Profit Targeted Profit (TF) Targeted Profit Targeted Profit Targeted Profit (TF Targeted Profit (TF) Targeted Profit (TF) Units required to reach targeted TF, X = (TFC+ TF ) /(P-V) Units required to reach targeted TF, X(TFC TF) (P- V) Units required to reach targeted TF, X = (TFC TF) (P- V) Units required to reach targeted TF, X (TFCTF) (P- V)