CHAMBERLAIN COLLEGE OF NURSING
NR 533 Week 5 Assignment
Break-Even Analysis
Official Practice Exam | 2026/2027 Edition
Questions: 50 Minutes: 90 Passing Score: 80% Recertification Required
TABLE OF CONTENTS
Section 1: Break-Even Analysis Fundamentals (13 Questions)
Section 2: Variable and Fixed Cost Classification (13 Questions)
Section 3: Contribution Margin and Revenue Analysis (12 Questions)
Section 4: Application of Break-Even in Healthcare Decision-Making (12 Questions)
EXAM INSTRUCTIONS
This practice exam contains 50 multiple-choice questions divided into 4 sections. You have 90 minutes
to complete the entire exam. Each question has four answer choices (A, B, C, D). Select the one best
answer for each question. A passing score of 80% (40 correct out of 50) is required. Read each scenario
carefully before selecting your answer. The correct answer and rationale are provided after each question
for immediate self-assessment and learning reinforcement. Do not skip any questions.
EXAM CONTENT OVERVIEW
Section 1: Break-Even Analysis Fundamentals -- Core concepts, formulas, definitions, and the
fundamental principles underlying break-even analysis in healthcare financial management.
Section 2: Variable and Fixed Cost Classification -- Identifying, categorizing, and distinguishing
between variable, fixed, semi-variable, and step costs in healthcare settings.
Section 3: Contribution Margin and Revenue Analysis -- Calculating contribution margins, CM ratios,
break-even revenue, and analyzing multi-payer revenue streams in nursing administration.
Section 4: Application of Break-Even in Healthcare Decision-Making -- Real-world scenarios including
make-or-buy decisions, service expansion, staffing models, and strategic resource allocation.
SCORING GUIDE
Total Questions: 50 | Passing Score: 80% | Questions Needed to Pass: 40 out of 50
Each correct answer = 1 point. No penalty for incorrect answers. Answer every question.
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 1
, SECTION 1: BREAK-EVEN ANALYSIS FUNDAMENTALS | 2026/2027
Q1 Question 1 of 50
A 45-bed medical-surgical unit is evaluating whether to add a new wound care service. The nurse
manager knows that the break-even point represents the volume at which total revenue equals total
cost. The unit expects fixed costs of $120,000 per year and variable costs of $45 per visit. What does
the break-even point specifically identify for this service?
A. The number of visits needed to cover all fixed and variable costs with zero profit
B. The maximum profit achievable at full capacity utilization
C. The minimum variable cost per visit to remain profitable
D. The total revenue generated at maximum patient volume
Correct Answer: A
Rationale:
The break-even point identifies the exact volume where total revenue equals total cost, resulting in zero profit.
Option B describes capacity-based profit rather than equilibrium. Option C confuses cost minimization with
volume-based analysis, and option D describes revenue at maximum volume, not the cost-revenue
intersection.
Q2 Question 2 of 50
A nurse administrator at a 200-bed community hospital is preparing a break-even analysis for a
proposed outpatient surgery center. She calculates fixed costs of $900,000, a projected charge of
$3,000 per procedure, and variable costs of $1,500 per procedure. What is the break-even volume
for this surgery center?
A. 300 procedures
B. 600 procedures
C. 450 procedures
D. 900 procedures
Correct Answer: B
Rationale:
Break-even volume = Fixed Costs / (Price - Variable Cost) = $900,000 / ($3,000 - $1,500) = $900,000 / $1,500
= 600 procedures. Option A incorrectly divides fixed costs by the price per procedure. Option C divides by a
miscalculated contribution margin, and option D divides by the variable cost alone.
Q3 Question 3 of 50
A clinic manager is explaining break-even analysis to the nursing staff during a budget meeting. She
states that understanding break-even is critical because it helps determine the minimum patient
volume needed to avoid financial loss. Which statement best describes the primary purpose of
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 2
, break-even analysis in healthcare organizations?
A. To calculate the maximum reimbursement rate from insurance payers
B. To identify the optimal staffing ratio for each nursing unit
C. To project the total market demand for healthcare services in a region
D. To determine the volume of services needed to cover all costs before profit is earned
Correct Answer: D
Rationale:
The primary purpose of break-even analysis is to find the volume threshold where total revenue equals total
costs, identifying the minimum volume to avoid loss. Option A relates to payer negotiation, option B to staffing
models, and option C to market analysis; none of these define the break-even concept.
Q4 Question 4 of 50
A nursing home administrator is reviewing a break-even graph that shows the total revenue line
intersecting the total cost line at 150 residents. At this intersection point, the facility generates exactly
$900,000 in revenue and incurs $900,000 in total costs. What is the financial status of the facility if it
operates with 165 residents?
A. The facility is generating a profit because volume exceeds the break-even point
B. The facility is operating at a loss because variable costs exceed revenue
C. The facility is breaking even with no profit or loss
D. The facility cannot determine profitability without knowing the exact cost per resident
Correct Answer: A
Rationale:
When volume exceeds the break-even point of 150 residents, each additional resident contributes a positive
margin (price minus variable cost), generating profit. Option B reverses the profit direction above break-even.
Option C would only be true at exactly 150 residents, and option D is unnecessary since the graph provides
the needed information.
Q5 Question 5 of 50
A charge nurse on a 32-bed telemetry unit is asked to contribute data for a break-even analysis of a
new cardiac monitoring service. The nurse provides information about nursing hours, supply usage,
and equipment depreciation. In a break-even analysis, equipment depreciation is classified as which
type of cost?
A. Variable cost because equipment usage varies with patient volume
B. Semi-variable cost because it partially varies with utilization
C. Step cost because it increases only when new equipment is purchased
D. Fixed cost because depreciation expense does not change with volume
Correct Answer: D
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 3
NR 533 Week 5 Assignment
Break-Even Analysis
Official Practice Exam | 2026/2027 Edition
Questions: 50 Minutes: 90 Passing Score: 80% Recertification Required
TABLE OF CONTENTS
Section 1: Break-Even Analysis Fundamentals (13 Questions)
Section 2: Variable and Fixed Cost Classification (13 Questions)
Section 3: Contribution Margin and Revenue Analysis (12 Questions)
Section 4: Application of Break-Even in Healthcare Decision-Making (12 Questions)
EXAM INSTRUCTIONS
This practice exam contains 50 multiple-choice questions divided into 4 sections. You have 90 minutes
to complete the entire exam. Each question has four answer choices (A, B, C, D). Select the one best
answer for each question. A passing score of 80% (40 correct out of 50) is required. Read each scenario
carefully before selecting your answer. The correct answer and rationale are provided after each question
for immediate self-assessment and learning reinforcement. Do not skip any questions.
EXAM CONTENT OVERVIEW
Section 1: Break-Even Analysis Fundamentals -- Core concepts, formulas, definitions, and the
fundamental principles underlying break-even analysis in healthcare financial management.
Section 2: Variable and Fixed Cost Classification -- Identifying, categorizing, and distinguishing
between variable, fixed, semi-variable, and step costs in healthcare settings.
Section 3: Contribution Margin and Revenue Analysis -- Calculating contribution margins, CM ratios,
break-even revenue, and analyzing multi-payer revenue streams in nursing administration.
Section 4: Application of Break-Even in Healthcare Decision-Making -- Real-world scenarios including
make-or-buy decisions, service expansion, staffing models, and strategic resource allocation.
SCORING GUIDE
Total Questions: 50 | Passing Score: 80% | Questions Needed to Pass: 40 out of 50
Each correct answer = 1 point. No penalty for incorrect answers. Answer every question.
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 1
, SECTION 1: BREAK-EVEN ANALYSIS FUNDAMENTALS | 2026/2027
Q1 Question 1 of 50
A 45-bed medical-surgical unit is evaluating whether to add a new wound care service. The nurse
manager knows that the break-even point represents the volume at which total revenue equals total
cost. The unit expects fixed costs of $120,000 per year and variable costs of $45 per visit. What does
the break-even point specifically identify for this service?
A. The number of visits needed to cover all fixed and variable costs with zero profit
B. The maximum profit achievable at full capacity utilization
C. The minimum variable cost per visit to remain profitable
D. The total revenue generated at maximum patient volume
Correct Answer: A
Rationale:
The break-even point identifies the exact volume where total revenue equals total cost, resulting in zero profit.
Option B describes capacity-based profit rather than equilibrium. Option C confuses cost minimization with
volume-based analysis, and option D describes revenue at maximum volume, not the cost-revenue
intersection.
Q2 Question 2 of 50
A nurse administrator at a 200-bed community hospital is preparing a break-even analysis for a
proposed outpatient surgery center. She calculates fixed costs of $900,000, a projected charge of
$3,000 per procedure, and variable costs of $1,500 per procedure. What is the break-even volume
for this surgery center?
A. 300 procedures
B. 600 procedures
C. 450 procedures
D. 900 procedures
Correct Answer: B
Rationale:
Break-even volume = Fixed Costs / (Price - Variable Cost) = $900,000 / ($3,000 - $1,500) = $900,000 / $1,500
= 600 procedures. Option A incorrectly divides fixed costs by the price per procedure. Option C divides by a
miscalculated contribution margin, and option D divides by the variable cost alone.
Q3 Question 3 of 50
A clinic manager is explaining break-even analysis to the nursing staff during a budget meeting. She
states that understanding break-even is critical because it helps determine the minimum patient
volume needed to avoid financial loss. Which statement best describes the primary purpose of
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 2
, break-even analysis in healthcare organizations?
A. To calculate the maximum reimbursement rate from insurance payers
B. To identify the optimal staffing ratio for each nursing unit
C. To project the total market demand for healthcare services in a region
D. To determine the volume of services needed to cover all costs before profit is earned
Correct Answer: D
Rationale:
The primary purpose of break-even analysis is to find the volume threshold where total revenue equals total
costs, identifying the minimum volume to avoid loss. Option A relates to payer negotiation, option B to staffing
models, and option C to market analysis; none of these define the break-even concept.
Q4 Question 4 of 50
A nursing home administrator is reviewing a break-even graph that shows the total revenue line
intersecting the total cost line at 150 residents. At this intersection point, the facility generates exactly
$900,000 in revenue and incurs $900,000 in total costs. What is the financial status of the facility if it
operates with 165 residents?
A. The facility is generating a profit because volume exceeds the break-even point
B. The facility is operating at a loss because variable costs exceed revenue
C. The facility is breaking even with no profit or loss
D. The facility cannot determine profitability without knowing the exact cost per resident
Correct Answer: A
Rationale:
When volume exceeds the break-even point of 150 residents, each additional resident contributes a positive
margin (price minus variable cost), generating profit. Option B reverses the profit direction above break-even.
Option C would only be true at exactly 150 residents, and option D is unnecessary since the graph provides
the needed information.
Q5 Question 5 of 50
A charge nurse on a 32-bed telemetry unit is asked to contribute data for a break-even analysis of a
new cardiac monitoring service. The nurse provides information about nursing hours, supply usage,
and equipment depreciation. In a break-even analysis, equipment depreciation is classified as which
type of cost?
A. Variable cost because equipment usage varies with patient volume
B. Semi-variable cost because it partially varies with utilization
C. Step cost because it increases only when new equipment is purchased
D. Fixed cost because depreciation expense does not change with volume
Correct Answer: D
NR 533 Break-Even Analysis -- 2026/2027 | Passing Score: 80% | Page 3
