Week 5: Breakeven Analysis
Assignment Guidelines with Scoring Rubric
Purpose
The purpose of this assignment is to:
To provide learners with the opportunity to develop breakevenanalysis skills.
Due Date:
Total Points Possible: 100
Requirements:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document, with the heading of Week 5 Assignment. For the questions requiring a written response, please adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all your work and follow the format that has been provided for the calculations in the lesson for Week 5.
 When performing calculations, standard rounding rules apply. If the number to the right of the decimal is less than 5, round down to the nearest whole number, e.g., 33.4 = 33 If the number to the right of the decimal is 5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
 Read the question carefully. Pay close attention to the units be asked and keep them consistent. For example, hours vs FTEs; days vs months vs years.
 Provide ALL formulas with references. Designate which formula associates with which source. It is not sufficient to simply list the source at the beginning of the section. Write out the formula used BEFORE filling in the numbers. Formulas used should be taken from one of the required resources for this course.
Example: Total Contribution Margin (CM) = (CM) category 1 + CM cat 2 + CM 3
Leger, J.M. & DunhamTaylor, J. (2018). Financial management for nurse managers: Merging the heart with the dollar, 4th Ed. Burlington, MA: JonesBartlett.
Preparing the paper
BreakEven Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient fertility clinic in your service area. All of you are very familiar with this patient population base, have completed an extensive market analysis that demonstrated a great need for the service, and are comfortable with setting up a business and the costs associated with this special group of patients.
As part of the business plan, you and your partners will need to convince stakeholders that this new service endeavor will be viable. They will want to know how many patients visits annually will need to occur and how long it will take for the service to be at least cost neutral or profitable. To provide them with this information you will perform a breakeven analysis. Use the following data, conduct the analysis accounting for the contribution margin of each patient acuity category.
 Fixed Costs: $9,788,000 (startcosts, specialty physicians, anesthesiologists, APNs, staff
nurses and other staff salaries, specialty equipment, other miscellaneous)
 Variable costs: $500/patient visit (specialty equipment, oxygen supplies, other
miscellaneous)
 Clinic days: MondaySaturday 305 days/year
 Projected patient visits per year: 7480
 Patient charges by patient acuity category:
 Simple (20%)————$2000/visit
 Moderate (70%)——–$6500/visit
 Complex (10%)———$10,000/visit
Breakeven Analysis Data Table  
Acuity Category  Percentage %  Charge per Visit  Visits per Year  Charges per Year  Visits per Day  Charges per Day  Contribution Margin  
Simple  20%  $2000  
Moderate  70%  $6500  
Complex  10%  $10,000  
Expected Total Daily Charges  
Expected Total Daily Revenue  
Break Even point in days  
Break Even point in visits  
 Describe your approach to this case study. In addition to the numbers given, what do you need to know before you can calculate the breakeven analysis?
 Perform the calculations needed for the breakeven analysis. Show your work, formulas used, and reference the formula. When calculating the patient visits per day, round to the nearest whole. After you’ve completed the calculations, record your results in the appropriate place in the table.
 How many patient visits are expected per day?
 What is the contribution margin of each category of patient?
 Based on the data and your calculations, what is the expected daily revenue?
 How long (in days, months, or years) will it be before the return on investment begins?
 How many patient visits will be required to reach the breakeven point?
 Discuss your analysis. Is the project viable and profitable service? Does the analysis support moving forward with the business? Cite specific data from you analysis to support your interpretation.
Points  %  Description  
Approach to BreakEven Analysis  5  5%  Approach to Breakeven analysis is clearly articulated and contains elements needed to address the scenario 
Calculate the number of patients/category served per year and day.  15  15%  Number of patients served by the fertility clinic is correctly calculated per year and day for each type/category. Formulas are correctly shown, used, and referenced. Calculations are shown 
Calculate the contribution margin for each patient category  30  30%  For each of the three patient/categories the contribution margin is correctly calculated. Formulas are correctly shown, used, and referenced. Calculations are shown. 
Calculate the number of days to breakeven.  10  10%  Time to breakeven in days is correctly calculated. Formulas are correctly shown, used, and referenced. Calculations are shown 
Calculate the breakeven quantity (number of visits).  15  15%  The breakeven quantity (number of visits) is correctly calculated. Formulas are correctly shown, used, and referenced. Calculations are shown. 
Analysis of breakeven analysis  20  20%  Breakeven analysis is clearly articulated. Includes elements potential for viability and profitability of service, recommendation for continuing the business. Specific data from the analysis is used to support your interpretation. 
Writing conventions, format, and
reference citations 
5  5%  Writing is clear concise without grammatical and spelling errors. All references are correctly cited (if applicable) and written. 
100  100  A quality assignment will meet or exceed all of the above requirements. 
Grading Rubric
Assignment Criteria 
Outstanding or highest level of performance 
Very good or high level of performance 
Competent or satisfactory level of performance 
Poor or failing level of performance 
Unsatisfactory level of performance 
Content
Possible Points = 100 Points 




Approach to BreakEven Analysis  5 Points  0 Points  
Calculate the number of patients per category served at the fertility clinic per year and per day.  15 Points  10  5  0 Points  
Number of patients served per year and per day is correctly calculated for each patient category served at the fertility clinic.  2/3 categories correctly calculated  1/3 of categories correctly calculated  All categories incorrectly calculated  
Calculate the contribution margin for each type of patient served at the fertility clinic.  30 Points  20  10  0 Points  
Contribution margin for all category types are correctly calculated  Contribution margin for 2/3 category types are correctly calculated  Contribution margin for 1/3 category types are correctly calculated  Contribution margins for all category types are incorrectly calculated  
Calculate the breakeven quantity (number of visits)  10 Points  0 Points  
Number of visits to break even is correct  Number of visits to break even is incorrect  
Calculate the number of days to breakeven point.  15 Points  0 Points  
Number of days to breakeven is correct.  Number of days to break even is incorrect.  
Analysis of breakeven analysis  20 Points  15 Points  10 Points  5 Points  0 Points 
Breakeven analysis is clearly articulated. Includes elements potential for viability and profitability of service, recommendation for continuing the business. Specific data from the analysis is used to support your interpretation.  3/4 of all elements of breakeven analysis are present and correct.  1/2 of all elements of breakeven analysis are present and correct.  1/4 of all elements of breakeven analysis is present and correct.  All elements of breakeven analysis are missing or incorrect.  
Writing conventions, format, references  5 Points  3 points  1 point  0 points  
Writing is clear and concise, contains no grammatical and spelling errors. All references are correctly cited (if applicable) and written.  2/3 of elements are present and correct  1/3 of elements is present and correct  All elements of writing conventions are missing or incorrect.  
Content Subtotal  of 100 points  
Total Points  _____of points 
Place your order now for the similar assignment and get fast, cheap and best quality work written by our expert level assignment writers.
Use Coupon Code: NEW30 to Get 30% OFF Your First Order
Answered Questions:
ANSWERED! 67yearold female presents with chief complaint
SOLVED! Healthcare continues to be a lucrative target for
SOLVED! Post a brief explanation of the differences between
SOLVED!! Explain how interprofessional collaboration will
SOLVED! Mr. EBR is a 74yearold retired Hispanic gentleman
[ANSWERED] Pakistani Woman with Delusional Thought Processes
[ANSWERED] Assessing the Genitalia and Rectum
[ANSWERED] Explain how you would advocate for the