Monia Lee, administrative director of the Digital Imaging Center, has been asked by practice members to see if it is feasible to add more staff to carry practice's mammography service, explain which currently has 2 digital units and 2 technologists. She has compiled the following information:
- Equipment lease per month per machine = $12.000
- Reimbursement per mammography = $140
- Equipment maintenance per month per machine = $9,000
- Technologist aide per mammography = $20
- Technologist cost per mammography = $35
- Variable cost per mammography = $13
1. Determine the patient volume required per month to cover fixed and the variable costs?
2. Determine the patient volume required per month if the company desires to cover its fixed and variable costs and make a $3,000 profit on this equipment to cover other costs associated with the organization?
3. If reimbursement decreases to $110 per screen, determine the patient volume required per month to cover fixed and variable costs but not profit?
4. If a new technologist aide is hired, determine the patient volume required per month at original reimbursement rate to cover costs but not profit?