[Solution]Break-even Analysis Assignment

Guidelineswith Scoring Rubric Purpose The purpose of this assignment is to: To provide learners with the opportunity todevelop break-even-analysisskills.   Course Outcomes Through this assignment,…

Guidelineswith Scoring Rubric
Purpose
The purpose of this assignment is to:
To provide learners with the opportunity todevelop break-even-analysisskills.
 
Course Outcomes
Through this assignment, the student will demonstrate the ability to:
(CO#8) Delineate effective resource management and fiscal responsibilities of the nurse executive. (PO8)
Due Date: Sunday 11:59 PM MT at the end of Week6
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 6Assignment.  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 thatdemonstrated 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:
 

Simple 15%     =          $2,000
Moderate 60%     =          $6,500
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 contribution margin for each type of patient served at the fertility clinic.
15
15%
Please include the description of the criterion

Calculate the total weighted average contributing margin.
 
15
15%
 

Calculate the break-even quantity (number of visits).
15
15%
 

Calculate the number of patients served per day.
15
15%
 

Calculate the number of days to break-even.
15
15%
 

Analysis of break-even analysis
25
25%
 

 100
100
A quality assignment will meet or exceed all of the above requirements.

Grading Rubric

Assignment Criteria
 
Exceptional
(100%)
Outstanding or highest level of performance
 
Exceeds
(88%)
Very good or high level of performance
 
Meets
(80%)
Competent or satisfactory level of performance
Needs Improvement
(38%)
Poor or failing level of performance
 
Developing
(0)
Unsatisfactory level of performance

Content
Possible Points =  Points
 
 
 
 
 
 
 
 

Calculate the contribution margin for each type of patient served at the fertility clinic.
15 Points
10 Points
 
5 Points
 
 
0 Points

Contribution margin for each type of patient served at the fertility clinic is correct.
Calculates 2/3 contribution margins correctly
Calculates 1/3 contribution margins
correctly.
Contribution margin for each type of patient served at the fertility clinic is incorrect.

Calculate the total weighted average contributing margin.
 
15 Points
 
0 Points

Total weighted average contributing margin is correct.
Calculation of total weighted average contributing marginis incorrect.

Calculate the break-even quantity (number of visits).
15 Points
 
0 Points

Break-even quantity (number of visits) is correct.
Break-even quantity (number of visits) is incorrect.

Calculate the number of patients served per day.
15 Points
 
0 Points

Number of patients served per day is correct.
Number of patients served per day is incorrect.
 

Calculate the number of days to break-even.
15 Points
 
0 Points

Number of days to break-even is correct.
Number of days to break even is incorrect.

Analysis of break-even analysis
25 Points
22 Points
20 Points
10 Points
0 Points

Analysis of break-even analysis is thoroughly and clearly identified and stated
Analysis of break-even analysis is adequately identified and stated, but could be more thorough or clear
Analysis of break-even analysis is lacks thorough and clear statements
Analysis of break-even analysis is mimimally identified and stated.
Analysis of break-even analysis is not identified and stated
 

Content Subtotal
 
 
of 100 points

Total Points
 
 
_____of  points

 

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