Assignment: Break-Even Analysis
Discuss the importance of a break-even analysis when making a decision to lease or buy a piece of equipment. Research and provide an example of a break-even analysis conducted in a health care organization. Complete the following:
a. Prepare a strategic assessment of the sample break-even analysis you researched. Within your assessment, discuss when it is appropriate to use a break-even analysis and how a break-even analysis is done.
b. Analyze the financial data in the sample break-even analysis and explain the potential implications for the health care institution. Discuss the role of fixed and variable costs in the break-even analysis and how indirect costs and profit are factored into the analysis.
c. Evaluate the probable priorities and expectations of stakeholders surrounding this break-even analysis.
d. Discuss if you would develop a strategic plan to move forward based on the sample break-even analysis.
e. Explain how the sample break-even analysis might be used to make a long-term financial decision.
f. Assess the potential financial impact of the sample break-even analysis as it relates to organizational strategy, patient care, or community health.
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.