Calculating Breakeven. Ms Jasmine Gonzales, administrative director of Physicians Associates, a group practice, has been asked if the group should begin offering mammography screenings. The following are Ms GonzalesĂ˘â‚¬â„˘s projections:
Price per screening: $90
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You wonâ€™t have to worry about the quality and deadlinesOrder Paper Now
TechniciansĂ˘â‚¬â„˘ salaries: $60,000
Operating costs per screening:
 Useful life of 10 years (assume straight-line depreciation)
a. What annual volume must the unit operate at in order to break even on the service?
b. How do breakeven projections change if the group practice required a $22,000 profit?
c. Suppose reimbursement levels for mammography services provided only $65 per screening. How many screenings per year would the group practice have to perform to break even? (Assume no profit.)