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.
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
The fertility clinic will be open Monday
through Saturday; 312 days per year.
fertility outpatient clinic has variable costs of $500 per patient visit —fertility
medical equipment, oxygen supplies, and other miscellaneous items.
patient will be charged the following per visit based on patient acuity
Simple 15% = $2,000Moderate 60% = $6,500Complex 25% = $10,000
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?
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?
Calculate the contribution margin for each type
of patient served at the fertility clinic.
Please include the description of
Calculate the total weighted average
the break-even quantity (number of visits).
number of patients served per day.
Calculate the number of days to break-even.
Analysis of break-even
A quality assignment will meet or
exceed all of the above requirements.
The post Break-Even Analysis Case Study
Assignment status: Solved by our experts