Posted: July 14th, 2016

What is your interpretation of the break-even analysis?

An outpatient fertility clinic

You and several of your colleague’s business partners have decided to establish an outpatient fertility clinic in your service area. You are familiar with this patient population base, have completed an extensive market analysis demonstrating a great need for the service, and are comfortable setting up a business and the costs associated with this special group of patients.

The outpatient fertility clinic will have a fixed cost of $9,788,000 for start-up costs, hiring specialty physicians, anesthesiologists, advanced practice nurses, staff nurses, salaries, purchase of high-technology fertility equipment, and other miscellaneous items. The fertility clinic will be open Monday through Saturday, 312 days per year. The fertility outpatient clinic has variable costs of $500 per patient visit-fertility medical equipment, oxygen supplies, and other miscellaneous items.

Each patient will be charged the following per visit based on patient acuity categories: 1. Simple 15% = $2,000 2. Moderate 60% = $6,500 3. Complex 25% = $10,000.

The projected yearly patient visits are anticipated to be 7,488.

How many patients would the clinic have to provide ser services to break even, and at what point would this occur?

What is your interpretation of the break-even analysis? Is this project a variable and profitable service?

Does the break-even analysis support moving forward with this business? Why, or why not?

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Live Chat+1-631-333-0101EmailWhatsApp