Your organization is purchasing a robotic surgical machine for the operating room. Listed below is a list of related expenses. Using the information provided please calculate the break-even, Total Fixed Costs, how many procedures must be done before the purchase returns a profit, and variable cost dependent upon volume ?

Cost $2,000,000.00 ($400.00 fixed costs)

Annual maintenance $15,000.00

Insurance Reimbursement $5,000.00 ave per procedure

Patient co-pay $750.00

Patient Supplies per price $350.00 "selling" Prices

Staff cost per procedure $275.00

Variable Costs

The assignment provided the total cost but also provided the yearly for

both equipment and maintenance. If you chose to use the full cost

you have to take all 5 years of maintenance into consideration for the calculation, as well.

Answer rating: 100% (QA)

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