Break-Even Point Formulas
Given the imaging center scenario and financial data, complete the “Week 8 Assignment 2 Break Even Excel Template”.
Given the imaging center scenario and financial data, create an Excel spreadsheet showing the following:
-Solve for monthly volume to break even.
-Solve for monthly volume needed to break even at desired $5,000 per month profit level.
-Solve for volume needed to break even at new reimbursement of $55 per screen and no profit.
Solve for volume needed to break even with additional labor.
Before making hiring or purchasing decisions, health care 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 an imaging center and calculate break-even points.
To prepare for this Assignment:
Review the Week 8 Assignment 2 document provided to you by the Instructor. Examine the 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.