Nr 533 week 3 break even assignment

Nr 533 week 3 break even assignment Break-Even Analysis Student Name Chamberlain College of Nursing NR: Financial Management in Healthcare Organizations January 2020 Nr 533 week 3 break even assignment Nr 533 week 3 break even assignment 1. Describe your approach to this case study. In addition to the numbers given, what do you need to know before you can calculate the break-even analysis? My approach to this case study would be first to identify the fixed costs cost and variable costs in the company and then combines both the costs into one total cost line (Harding, 2017). The breakeven point occurs when the line of the total cost intersects with the line representing the company’s revenue. Secondly, I would focus on profit contribution by the company which simply is a per-unit measure of profit on the number of visits to be performed. Break-even analysis is a financial calculation that is to determine the number of products and services that are required to sell to get the cost that will be incurred by the business. Before the calculation of the break-even analysis, one should know the average per-unit sales price (per unit revenue). According to a break-even point analysis is a measurement system that calculates the margin of safety by comparing the number of revenues or units that must be sold to cover fixed and variable costs associated with making the sales (Chu et al., 2017). In other words, it’s a way to calculate when a project will be profitable by equating its total revenues with its total expenses. 2. Perform the calculations needed for the break-even analysis. Show your work, formulas used, and reference the formula. When calculating the patient visits per day, round to the nearest whole. After you’ve completed the calculations, record your results in the appropriate place in the table Break-even Analysis Data Table Acuity Category Percentage % Charge per Visit Visits per Year Charges per Year Visits per Day Charges per Day Contribution Margin Simple 20% $ $2,992,000 5 $10,000 $7,500