Nr 630 Week 6 Assignment, Break Even Analysis Case Study

NR 630 WEEK 6 ASSIGNMENT, BREAK EVEN ANALYSIS CASE STUDY Purpose The purpose of this assignment is to: To provide learners with the opportunity to develop break-even-analysis skills. Due Date: Sunday 11:59 PM MT at the end of Week 6 Total Points Possible: 100 REQUIREMENTS: Answer the questions and complete the calculations required for the assignment. Submit your answers on a Word document, with the heading of Week 6 Assignment. For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all your work and follow the format that has been provided for the calculations in the lesson for Week 6. PREPARING THE PAPER Break-Even Analysis Case Study You 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. The outpatient 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 miscellaneous items. The fertility clinic will be open Monday through Saturday; 312 days per year. The fertility outpatient clinic has variable costs of $500 per patient visit —fertility medical equipment, oxygen supplies, and other miscellaneous items. Each patient will be charged the following per visit based on patient acuity categories: 1. Simple 15% = $2,000 2. Moderate 60% = $6,500 3. Complex 25% = $10,000 The 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? What 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? Category Points % Description Calculate the contribution margin for each type of patient served at the fertility clinic. 15 15% Please include the description of the criterion Calculate the total weighted average contributing margin. 15 15% Calculate the break-even quantity (number of visits). 15 15% Calculate the number of patients served per day. 15 15% Calculate the number of days to break-even. 15 15% Analysis of break-even analysis 25 25% 100 100 A quality assignment will meet or exceed all of the above requirements. GRADING RUBRIC Assignment Criteria Exceptional (100%) Outstanding or highest level of performance Exceeds (88%) Very good or high level of performance Meets (80%) Competent or satisfactory level of performance Needs Improvement (38%) Poor or failing level of performance Developing (0) Unsatisfactory level of performance Content Possible Points = Points Calculate the contribution margin for each type of patient served at the fertility clinic. 15 Points 10 Points 5 Points 0 Points Contribution margin for each type of patient served at the fertility clinic is correct. Calculates 2/3 contribution margins correctly Calculates 1/3 contribution margins correctly. Contribution margin for each type of patient served at the fertility clinic is incorrect. Calculate the total weighted average contributing margin. 15 Points 0 Points Total weighted average contributing margin is correct. Calculation of total weighted average contributing margin is incorrect. Calculate the break-even quantity (number of visits). 15 Points 0 Points Break-even quantity (number of visits) is correct. Break-even quantity (number of visits) is incorrect. Calculate the number of patients served per day. 15 Points 0 Points Number of patients served per day is correct. Number of patients served per day is incorrect. Calculate the number of days to break-even. 15 Points 0 Points Number of days to break-even is correct. Number of days to break even is incorrect. Analysis of break-even analysis 25 Points 22 Points 20 Points 10 Points 0 Points Analysis of break-even analysis is thoroughly and clearly identified and stated Analysis of break-even analysis is adequately identified and stated, but could be more thorough or clear Analysis of break-even analysis is lacks thorough and clear statements Analysis of break-even analysis is mimimally identified and stated. Analysis of break-even analysis is not identified and stated Content Subtotal of 100 points Total Points _____of points