Calculating break-even. Jasmine Gonzales, administrative director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice’s mammography service, which currently has 2 analogue film or screen units and 2 technologists. She has complied the following information: • What is the monthly patient volume needed per month to cover fixed and variable costs? 1. Reimbursement per screen $66.05 2. Equipment costs per month $1,450.00 3. Technologist cost per mammography $15.60 4. Technologist aide per mammography $3.10 5. Variable cost per mammography $15.00 6. Equipment maintenance per month per machine $919.66 • What is the patient volume needed per month if Small Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization? • If reimbursement decreases to $60 per screen, what is the patient volume needed per month to cover fixed and variable costs but not profit? • If a new technologist aide is hired, what is the patient volume needed per month at the original reimbursement rate to variable costs, but not profit?

To calculate the break-even point, we need to consider the fixed costs, variable costs, and desired profit.

1. Calculate the fixed costs:
Fixed costs = Equipment costs per month + Equipment maintenance per month
Fixed costs = $1,450.00 + $919.66

2. Calculate the variable costs per mammography:
Variable costs per mammography = Technologist cost per mammography + Technologist aide per mammography + Variable cost per mammography
Variable costs per mammography = $15.60 + $3.10 + $15.00

3. Calculate the patient volume needed per month to cover fixed and variable costs and make a $5,000 profit:
Total costs = Fixed costs + Variable costs per mammography
Volume * Reimbursement per screen = Total costs + $5,000
Volume = (Total costs + $5,000) / Reimbursement per screen

Substitute the values into the equation and calculate the patient volume.

4. If the reimbursement decreases to $60 per screen, calculate the patient volume needed per month to cover fixed and variable costs (excluding profit):
Total costs = Fixed costs + Variable costs per mammography
Volume * Reimbursement per screen = Total costs
Volume = Total costs / Reimbursement per screen

Substitute the new reimbursement value into the equation and calculate the patient volume.

5. If a new technologist aide is hired, calculate the patient volume needed per month at the original reimbursement rate to cover variable costs (excluding profit):
Variable costs per mammography = Technologist cost per mammography + (Technologist aide per mammography * 2)
Volume * Reimbursement per screen = Variable costs per mammography
Volume = Variable costs per mammography / Reimbursement per screen

Substitute the values into the equation and calculate the patient volume.

By following these steps, you can calculate the required patient volumes for different scenarios.