Chamberlain College of Nursing NR533 Financial Management of Healthcare Organizations
NR 533 Week 5: Break-even Analysis Assignment | 2025 Update with complete solutions.
Purpose
The purpose of this assignment is to:
To provide learners with the opportunity to develop break-even-analysis skills.
Due Date: Sunday 11:59 PM MT at the end of Week 5
Total Points Possible: 100
REQUIREMENTS:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document, with the heading of Week 5 Assignment. For the questions
requiring a written response, please adhere to proper grammar and syntax, and provide references. For the
questions requiring calculations, show all your work and follow the format that has been provided for the
calculations in the lesson for Week 5.
1. When performing calculations, standard rounding rules apply. If the number to the right of the
decimal is less than 5, round down to the nearest whole number, e.g., 33.4 = 33 If the number to the
right of the decimal is 5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
2. Read the question carefully. Pay close attention to the units be asked and keep them consistent. For
example, hours vs FTEs; days vs months vs years.
3. Provide ALL formulas with references. Designate which formula associates with which source. It is
not sufficient to simply list the source at the beginning of the section. Write out the formula used
BEFORE filling in the numbers. Formulas used should be taken from one of the required
resources for this course.
Example: Total Contribution Margin (CM) = (CM) category 1 + CM cat 2 + CM 3
Leger, J.M. & Dunham-Taylor, J. (2018). Financial management for nurse managers:
Merging the heart with the dollar, 4th Ed. Burlington, MA: Jones-Bartlett.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient fertility clinic in
your service area. All of you are very familiar with this patient population base, have completed an extensive
market analysis that demonstrated a great need for the service, and are comfortable with setting up a business
and the costs associated with this special group of patients.
, As part of the business plan, you and your partners will need to convince stakeholders that this new service
endeavor will be viable. They will want to know how many patients visits annually will need to occur and how
long it will take for the service to be at least cost neutral or profitable. To provide them with this information you
will perform a break-even analysis. Use the following data, conduct the analysis accounting for the contribution
margin of each patient acuity category.
• Fixed Costs: $9,788,000 (start-costs, specialty physicians, anesthesiologists, APNs, staff
nurses and other staff salaries, specialty equipment, other miscellaneous)
• Variable costs: $500/patient visit (specialty equipment, oxygen supplies, other
miscellaneous)
• Clinic days: Monday-Saturday- 305 days/year
• Projected patient visits per year: 7480
• Patient charges by patient acuity category:
o Simple (20%) ------------ $2000/visit
o Moderate (70%) --------$6500/visit
o Complex (10%) --------- $10,000/visit
Break-even Analysis Data Table
Acuity Percentage Charge Visits per Charges per Visits per Charges per Day Contribution
Category % per Visit Year Year Day Margin
Simple 20% $2000 1496 $2000 x 1496 1496/305 5 x $2000 5 x $500
7480x20 $2,992,000 4.9 or 5 =$10,000 =$2500
% =$7,500
Moderate 70% $6500 5236 $6500 x 5236 5236/305 17 x $6500 17 x $500
7480x70 $34,034,000 17.1 or 17 =$110,500 =$8,500
% =$102,000
Complex 10% $10,000 748 $10,000 x 748 748/305 2 x $10,000 2 x $500
7480x10 $7,480,000 2.4 or 2 =$20,000 =$1000
% =$19,000
Expected Total Daily Charges $140,500
TOTAL DAILY CHARGES = SIMPLE DAILY CHARGES + MODERATE DAILY
CHARGES + COMPLEXDAILY CHARGES
Total daily charges = $ 10,000 + $110,500 + $20,000
Total daily charges = $140,500
Expected Total Daily Revenue $140,500-
Projected Daily Revenue = Total Daily Charges – Daily Variable Costs $12,000
= $128,500
Break Even point in days. 9,788,000/$128,500
Break-even point in days = start-up expenses / daily revenue =76
Break Even point in visits. 76 x 24
Break-even point in patient visits = total days to break-even X pts per day 1,824
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? Prior to performing a break-even analysis I
would need to gather Fixed Costs, Variable Costs, Volume and Contribution Margin. My approach
NR 533 Week 5: Break-even Analysis Assignment | 2025 Update with complete solutions.
Purpose
The purpose of this assignment is to:
To provide learners with the opportunity to develop break-even-analysis skills.
Due Date: Sunday 11:59 PM MT at the end of Week 5
Total Points Possible: 100
REQUIREMENTS:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document, with the heading of Week 5 Assignment. For the questions
requiring a written response, please adhere to proper grammar and syntax, and provide references. For the
questions requiring calculations, show all your work and follow the format that has been provided for the
calculations in the lesson for Week 5.
1. When performing calculations, standard rounding rules apply. If the number to the right of the
decimal is less than 5, round down to the nearest whole number, e.g., 33.4 = 33 If the number to the
right of the decimal is 5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
2. Read the question carefully. Pay close attention to the units be asked and keep them consistent. For
example, hours vs FTEs; days vs months vs years.
3. Provide ALL formulas with references. Designate which formula associates with which source. It is
not sufficient to simply list the source at the beginning of the section. Write out the formula used
BEFORE filling in the numbers. Formulas used should be taken from one of the required
resources for this course.
Example: Total Contribution Margin (CM) = (CM) category 1 + CM cat 2 + CM 3
Leger, J.M. & Dunham-Taylor, J. (2018). Financial management for nurse managers:
Merging the heart with the dollar, 4th Ed. Burlington, MA: Jones-Bartlett.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient fertility clinic in
your service area. All of you are very familiar with this patient population base, have completed an extensive
market analysis that demonstrated a great need for the service, and are comfortable with setting up a business
and the costs associated with this special group of patients.
, As part of the business plan, you and your partners will need to convince stakeholders that this new service
endeavor will be viable. They will want to know how many patients visits annually will need to occur and how
long it will take for the service to be at least cost neutral or profitable. To provide them with this information you
will perform a break-even analysis. Use the following data, conduct the analysis accounting for the contribution
margin of each patient acuity category.
• Fixed Costs: $9,788,000 (start-costs, specialty physicians, anesthesiologists, APNs, staff
nurses and other staff salaries, specialty equipment, other miscellaneous)
• Variable costs: $500/patient visit (specialty equipment, oxygen supplies, other
miscellaneous)
• Clinic days: Monday-Saturday- 305 days/year
• Projected patient visits per year: 7480
• Patient charges by patient acuity category:
o Simple (20%) ------------ $2000/visit
o Moderate (70%) --------$6500/visit
o Complex (10%) --------- $10,000/visit
Break-even Analysis Data Table
Acuity Percentage Charge Visits per Charges per Visits per Charges per Day Contribution
Category % per Visit Year Year Day Margin
Simple 20% $2000 1496 $2000 x 1496 1496/305 5 x $2000 5 x $500
7480x20 $2,992,000 4.9 or 5 =$10,000 =$2500
% =$7,500
Moderate 70% $6500 5236 $6500 x 5236 5236/305 17 x $6500 17 x $500
7480x70 $34,034,000 17.1 or 17 =$110,500 =$8,500
% =$102,000
Complex 10% $10,000 748 $10,000 x 748 748/305 2 x $10,000 2 x $500
7480x10 $7,480,000 2.4 or 2 =$20,000 =$1000
% =$19,000
Expected Total Daily Charges $140,500
TOTAL DAILY CHARGES = SIMPLE DAILY CHARGES + MODERATE DAILY
CHARGES + COMPLEXDAILY CHARGES
Total daily charges = $ 10,000 + $110,500 + $20,000
Total daily charges = $140,500
Expected Total Daily Revenue $140,500-
Projected Daily Revenue = Total Daily Charges – Daily Variable Costs $12,000
= $128,500
Break Even point in days. 9,788,000/$128,500
Break-even point in days = start-up expenses / daily revenue =76
Break Even point in visits. 76 x 24
Break-even point in patient visits = total days to break-even X pts per day 1,824
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? Prior to performing a break-even analysis I
would need to gather Fixed Costs, Variable Costs, Volume and Contribution Margin. My approach
