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# Assignment: Case 3 1 Lakeside Hospital

288 words - 2 pages

Name: Shawnyknoxville
Class: HADM 542 W13 MANAGERIAL ACCT/HTH CARE ORG
Date: 1/29/2013
Assignment: Case 3-1 Lakeside Hospital

For Case 3-1: answer questions 1 - 5.

1.
Breakeven Volume Analysis
Varible costs
Medical Supplies: \$493,806
Purchased Laboratory Services: \$24,476
Water Usage: \$20,896
Total Variable Costs: \$539,178
Number of treatments: 5,736
Total Variable Cost / Number of treatments
\$539,178 / 5,736 = 94

Px = a + bx
\$250x = \$510,870 + 94x
\$156x = \$510,870
(\$156x = \$510,870)/\$156 = 3274.81
3274.81 treatments per year
7 nurses -1 \$35,000/7 = \$5,000 bi-monthly / 2 = \$2,500 monthly
(\$2,500 monthly)12 = \$30,000 per year
7 techs -1 \$30,680/7 = \$4382.86 bi-monthly(2 Employees)/ 2 = \$4382.86 monthly
(\$4382.86 monthly)12 = \$52,594.29 per year
\$30,000 per year + \$52,594.29 per year = \$82,594.29 per year
total payroll last year = \$436,800
\$436,800 - \$82,594.29 = \$354,205,71 projected payroll with 3 less employees
\$354,205.71/\$436,800 = 81.1% of previous years payroll expenses

Assumptions:
Medical Supplies: \$493,806
Purchased Laboratory Services: \$24,476
Water Usage: \$20,896
Are variable expensed and Depreciation is a fixed expense

2.
@ 50% Capasity
120 Treatments per week / 2 = 60 Treatments per week
(60 Treatments per week)(52 weeks in a year) =
3120 Treatments per year @ 50% Capacity
Treatments per year @ 50% Capacity / Number of treatments last year: 5,736 =
3,120/5,736 = 54.4%

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