1. Break-Even Point Formulas
DescriptionGiven 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. Break-Even Point Part a. Part b. Part c. Part d. Givens From Problem:
Costs Dollars No. Dollars No. Dollars No. Dollars No. A B C D E F G H I A B C D
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 Point Break-Even Point Break-Even Point Break-Even Units (X) X = TFC / (P –
V) Break-Even Units (X) X = TFC / (P – V) Break-Even Units (X) X = TFC / (P – V) Break-
Even Units (X) X = TFC / (P – V) Targeted Profit Targeted Profit Targeted Profit Targeted
Profit Targeted Profit (TF) 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 = (TFC + TF) / (P-V)
