Med-first solved - Med-First is a medical facility that...

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Med-First is a medical facility that offers outpatient medical services. The facility is considering offering an additional service, mammography screening test. The facility estimates the annual fixed cost of the equipment and skills necessary to be $120 000.00. Variable cost for each patient processed are estimated at $35.00 per patient. If the clinic plans to charge $55.00 for each screening test, how many patients must it process a year in order to break-even? Break-even formula = Fixed Cost Selling Price-Variable Cost So: 120 000/(55-35) = 6 000 patients/year to break-even. BREAK EVEN ANALYSIS CALCULATOR
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Note: Point of Indiference, is where the cost of two processes is equal. If demand is expected to be less than the point of indiference value then the process with the lowest fixed cost should be selected. If demand is expected to be greater than the point of indiference value, then the process with the lowest variable cost should be selected. 3. Tasty Ice Cream is a year round take out ice cream restaurant that is considering
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This note was uploaded on 08/29/2010 for the course ENGINEERIN 305 taught by Professor Martincandell during the Spring '10 term at Rio Hondo College.

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Med-first solved - Med-First is a medical facility that...

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