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NR 630 WEEK 6 ASSIGNMENT, BREAK EVEN ANALYSIS CASE STUDY
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NR 630 WEEK 6 ASSIGNMENT, BREAK EVEN ANALYSISCASE STUDY
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 6
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 6 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 6.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleagues 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.
The outpatient fertility clinic will have a fixed cost of $9,788,000 —start-up costs, hiring of specialty
physicians, anesthesiologists, advanced practice nurses and 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:
Revised 12.10.15 RD 1
, 1. Simple 15% = $2,000
2. Moderate 60% = $6,500
3. Complex 25% = $10,000
The projected patient visits per year are anticipated to be 7,488 visits. How many patients would the
clinic have to provide services for to break even, and at what point would this occur?
What is your interpretation of the break-even analysis? Is this project a viable and profitable
service? Does the break-even analysis support moving forward with this business? Why, or why
not?
Category Points % Description
Calculate the 15 15% Please include the description of the criterion
contribution
margin for
each type of
patient
served at the
fertility clinic.
Calculate the 15 15%
total
weighted
average
contributing
margin.
Calculate the 15 15%
break-even
quantity
(number of
visits).
Calculate the 15 15%
number of
patients
served per
day.
Calculate the 15 15%
number of
days to
break-even.
Analysis of 25 25%
break-even
analysis
Revised 12.10.15 RD 2
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