Problem:
Monia Lee, administrative director of Digital Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice;s mammography service, which currently has two digital units and two technologists. She has compiled the following information:
- Reimbursement per mammography = $140
- Equipment lease per month per machine = $12.000
- Equipment maintenace per month per machine = $9,000
- Technologist cost per mammography = $35
- Technologist aide per mammograpgy = $20
Variable cost per mammography = $13
Required:
Question 1: What is the patient volume needed per month to cover fixed and variable costs?
Question 2: What is the patient volume needed 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?
Question 3: If reimbursement decreases to $110 per screen, what is the patient volume needed per month to cover fixed and variable costs but not profit?
Question 4: If a new technologist aide is hired, what is the patient volume needed per month at the orginigal reimbursement rate to cover costs but not profit?
Note: Be sure to show how you arrived at your answer.