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Calculating Breakeven. Southern Regional Hospital is considering offering a new specialty service which will be provided out of its urgent care center. A pediatric cardiologist from the region’s teaching hospital is willing to provide services 4 times a month to the facility. Not only will this add a needed service to SRH, it will also generate revenues from the echocardiograms performed on the children. The following represent the projections of the clinic:

Revenues per study: $500

Echo cardiograph lease (per study) $100

Physician salary (per day): $750

Other expenses[1]: $800

[1] Cost per month of high speed telephone line for transmission of digital data.

a. At what volume per month does this service break even?

b. What is the breakeven point if the clinic wants to make $800 profit?

c. What is the breakeven if the revenue per study drops to $400 and the clinic wants to make $800 profit?