Please provide a detailed answer to the attached question showing all workings. Thank you.

Please provide a detailed answer to the attached question showing all workings. Thank you.

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Module 3 Discussion Board
Break-even Problem–Discussion Board–Module 3
Payor
Insured
50.0%
90.0%
Self Pay
50.0%
50.0%
Total
100.0%
 $250.00 
 $100.00 
Fixed Costs
 $200,000.00 
Capacity
2,400
Tests
Fixed Cost/

=
 $200,000.00 
($175

$100)
What is the break-even point? Should this opportunity be pursued?
=
Tests
**Decision?
Type answer here.
Share 
(Percent)
Collection Rate 
(Percent)
Aggregate 
Rate
A subordinate has come forward with a business venture concept that takes 
advantage of a piece of equipment currently performing below its capability. 
Here are the details:
1)
This equipment has the ability to produce a total of 200 tests a 
month. 
2)
This new business would have fixed costs of $200,000 per year for 
salaries.
3)
Each test performed would consume $100 of supplies. 
Gross Revenue 
per Unit
4)
The price charged would be $250 per test. 
Net Revenue 
per Unit
5)
The business office has indicated that the collection rate is 
a.
90% for insured patients  
Variable Cost 
per Unit
b.
50% for self-paying patients 
6)
The expected mix of patients is 
a.
50% insured 
b.
50% self-pay 
Break-even 
Point
Net Revenue 
per Unit
Variable Cost 
per Unit
been set up. Use Excel to calculate the Aggregate Rate, Net Revenue per Unit, 
and the Break-even Point. Post your decision and rationale to the Discussion 
Board.

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