Calculating break-even and graphing. San Juan Health Department\'s dental clinic

ID: 2469885 • Letter: C

Question

Calculating break-even and graphing. San Juan Health Department's dental clinic projects the following costs and rates for the year 20XX.

Total fixed costs $175,000

Variable costs $48 per patient

Charges $150 per patient

A. Using this information, determine the break even point in patients.

B. Using this information, determine the break-even point in dollars.

C. Graph this scenario in a break-even chart using a range of 0 to 3,500 patients in 500-patient increments.

D. If the clinic decides it would like to make a profit of $5,500, what is the new break-even point in patients?

E. If the clinic decides it would like to make a profit of $5,500 at 1,770 patients, what is the new break-even point in dollars?

Contribution per patient = 150 - 48 = 102

CM ratio = 102 /150 = .68 or68%

A)BEP($) =Fixed cost /CM ratio

= 175,000 / .68 =$ 257,352.94

B)BEP(units) = 175000/ 102 = 1715.69 units [rounded to 1716 ]

D) BEP = (175000 +5500) / 102

= 180500/ 102

= 1770 patients (rounded)

E) BEP dollars = 1770 * 150 = $ 265500

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