Jasmine Gonazles, Administrative Director of Small 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 (2) analogue film or screen units and (2) technologists. She has compiled the following information to help make the decision:Reimbursement per mammography $75Equipment costs per month $1600Technologist cost per mammography $20Technologist aide cost per mammography$4Variable cost per mammography $10Monthly maintenance per machine $700What is the monthly patient volume needed per month to cover fixed and variable costs?What is the monthly patient volume needed per month if Small Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization?If reimbursement decreases to $55 per screen, what is the monthly patient volume needed to cover fixed and variable costs but not profit?If a new technologist aide is hired in addition to the two technologists, what is the monthly patient volume needed at the original reimbursement rate to cover variable costs, but not profit?

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Answered: Jasmine Gonazles, Administrative…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 36E

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Jasmine Gonazles, Administrative Director of Small 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 (2) analogue film or screen units and (2) technologists. She has compiled the following information to help make the decision:

Reimbursement per mammography		$75
Equipment costs per month	$1600
Technologist cost per mammography		$20
Technologist aide cost per mammography	$4
Variable cost per mammography		$10
Monthly maintenance per machine		$700

What is the monthly patient volume needed per month to cover fixed and variable costs?
What is the monthly patient volume needed per month if Small Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization?
If reimbursement decreases to $55 per screen, what is the monthly patient volume needed to cover fixed and variable costs but not profit?
If a new technologist aide is hired in addition to the two technologists, what is the monthly patient volume needed at the original reimbursement rate to cover variable costs, but not profit?

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