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.