A Fixed Cost per month
Equipment Cost per month 800
Equipment maintenance 700
Total Fixed Cost 1,500
Total Variable Cost
Technologists costs per mammography 20
Technologists aide per mammography 4
Variable Cost per Mammography 10
Total Variable Cost 34
Break Even Point = Fixed Cost / Contribution Per
Contribution per Unit Reimbursement per screen - v
Reimbursement per screen $75
Contribution Per screen $41
Break Even Point = 36.59
Monthly volume to break even = 37
Monthly volume to break even for two machines = 74
B Monthly volume to earn a profit of $5,000:
Desired Profit = 5,000
Desired Profit per Machine = 2500
Volume = fixed cost + desired profit / Contribution per unit
Volume = 97.56
Total volume for 2 Machines and for total profit of 5,000 196
C If reimbursement is $55, the break even point =
New Reimbursement = $55
New Contribution = $21
Equipment Cost per month 800
Equipment maintenance 700
Total Fixed Cost 1,500
Total Variable Cost
Technologists costs per mammography 20
Technologists aide per mammography 4
Variable Cost per Mammography 10
Total Variable Cost 34
Break Even Point = Fixed Cost / Contribution Per
Contribution per Unit Reimbursement per screen - v
Reimbursement per screen $75
Contribution Per screen $41
Break Even Point = 36.59
Monthly volume to break even = 37
Monthly volume to break even for two machines = 74
B Monthly volume to earn a profit of $5,000:
Desired Profit = 5,000
Desired Profit per Machine = 2500
Volume = fixed cost + desired profit / Contribution per unit
Volume = 97.56
Total volume for 2 Machines and for total profit of 5,000 196
C If reimbursement is $55, the break even point =
New Reimbursement = $55
New Contribution = $21
