Finance

Conduct Break-Even Analysis in the following two scenarios:

R Squared is a mobile diagnostic imaging company that performs MRI scans of patients at hospitals and clinics that cannot afford their own scanners. General Hospital has contacted R Squared regarding a contract for services. Accountants at R Squared have calculated the variable cost per scan at $1,200. The fixed cost per month is $90,000 (Cost of MRI lease payments and service). The accepted price charged in the community for an MRI scan is $2,100.

R Squared must charge General Hospital $200 less than the community price in order to get the contract.

1. Approximately how many patients must R Squared scan at General Hospital to break even for a given month?

2. Approximately how many patients will General Hospital have to guarantee for R Squared to make a monthly profit of $10,000?

3. Assuming that General Hospital can guarantee 125 patients per month, will R squared accept the contract?

4. If not, what can General Hospital or R Squared do to reach an agreement?

Take a shot. Questions 1 and 2 are simple algebra.

  1. 👍 0
  2. 👎 0
  3. 👁 113
asked by sarah

Respond to this Question

First Name

Your Response

Similar Questions

  1. statics

    b. A mobile company XYZ wants to conduct a survey to find the proportion P of those customers that are happy with the purchase of their new mobile phone. The company took a random sample of 1000 customers who recently purchased

    asked by aima on November 19, 2014
  2. statistics

    b. A mobile company XYZ wants to conduct a survey to find the proportion P of those customers that are happy with the purchase of their new mobile phone. The company took a random sample of 1000 customers who recently purchased

    asked by aima on November 18, 2014
  3. accounting

    Your CEO has limited knowledge of management accounting but of course, is vitally interested in forecasting profitability under different scenarios. He asked you, the management accountant, to begin your report by answering a few

    asked by Kyra on July 31, 2010
  4. Ignore previous one(this is latest)

    Fix my recommendation letter. --------------- Mr. Rick Peterson(CEO) Sony Mobile Inc. 242 Bridge Road, Miami, FL 32090 Hello Mr. Peterson, My name is Gurvinder Singh. I work in T-Mobile company located in Miami, Florida, I would

    asked by Singh on July 2, 2007
  5. Research Project: Anatomy & Physiology 1

    What would be diagnostic finding imaging and histology for ALS?

    asked by Diana on February 6, 2014
  6. MARKETING

    1. Introduction – You need to work out what is the business scope of the company. That is what business are they in? 2. You will conduct an internal environment analysis – with a particular view to how well the company is

    asked by VISHNU on March 7, 2009
  7. Business organisation

    I have an assigment in which they told me to make a pest analysis on an company..they gave the details of the company ..its an event company..can you plz help me as i don't know how to conduct pest analysi

    asked by Numra on February 7, 2016
  8. Adult Education

    Choosing to blow the whistle on your employees or coworkers can create all kinds of legal, ethical, and career complications. Here are five common workplace scenarios that will challenge employees about whether or not they should

    asked by bessie on September 24, 2012
  9. business

    Im post this question again. Please, let there be some response You are employed in the marketing department of The Mobile Phone Network, a retail chain selling mobile phones. The company wants to find out more about its

    asked by VICTOR on February 16, 2009
  10. i need help

    what 3-d imaging use to capture a digital map of an artifact? a. electromagnetic radiation b. laser technologe c. laser technology d. photography

    asked by help?thanks on January 27, 2015

More Similar Questions