The purpose of this assignment is to provide learners with the opportunity todevelop break-even-analysisskills.
Due Date: Sunday 11:59 p.m. MT at the end of Week5
Total Points Possible: 100
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document,with the heading of Week 5Assignment. For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all your work and follow the format that has been provided for the calculations in the lesson for Week 5.
Break-Even Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient fertility clinic in your service area. All of you are very familiar with this patient population base, have completed an extensive market analysis thatdemonstrated a great need for the service, and are comfortable with setting up a business and the costs associated with this special group of patients.
As part of the business plan, you and your partners will need to convince stakeholders that this new service endeavor will be viable. They will want to know how many patient visitswill need to occur annually and how long it will take for the service to be at least cost neutral or profitable. To provide them with this information you will perform a break-even analysis. Use the following data and conduct the analysis accounting for the contribution margin of each patient acuity category.
nurses and other staff salaries, specialty equipment, other miscellaneous)
|Break-even Analysis Data Table|
|Acuity Category||Percentage %||Charge per Visit||Visits per Year||Charges per Year||Visits per Day||Charges per Day||Contribution Margin|
|Expected Total Daily Charges|
|ExpectedTotal Daily Revenue|
|Break Even point in days|
|Break Even point in visits|
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