7/24/2019 Bus 503 Chapter 7 HW Solutions

1/4

PROBLEM 7-44 (45 MINUTES)

1. Break-even point in nit!"

#ar$inon%ontri&tinit

%o!t!'i(e)pointeven-Break =

*a+%+ation o' %ontri&tion #ar$in!"

La&or-Inten!ive

Pro%tionS,!te#

*o#pter-!!i!te

Man'a%trin$S,!te#

Se++in$ pri%e...................................... 45.// 45.//0aria&+e %o!t!"

ire%t #ateria+.............................. 2.4/ 7.5/ire%t +a&or................................... 1/.2/ 3.//0aria&+e overea......................... 7./ 4.5/0aria&+e !e++in$ %o!t..................... 6.// 3.4/ 6.// 4.//

*ontri&tion #ar$in per nit 15./ 1.//

(a) La&or-inten!ive pro%tion !,!te#"

nit!1758///

15./876/8///

15./

75/8///1832/8///nit!inpointeven-Break

(&) *o#pter-a!!i!te #an'a%trin$ !,!te#"

nit!1/8///

1

4841/8///

1

75/8///68/8///nit!inpointeven-Break

7/24/2019 Bus 503 Chapter 7 HW Solutions

2/4

PROBLEM 7-44 (*ONTINUE)

. 9oia%:! #ana$e#ent ;o+ &e ini''erent &et;een te t;o #an'a%trin$ #eto!at te vo+#e (X) ;ere tota+ %o!t! are e 4X= 4841/8///

5.4/X > 182/8///

X > 6118111 nit!?

?Rone

6. Operatin$ +evera$e i! te etent to ;i% a 'ir#@! operation! e#p+o, 'ie operatin$%o!t!. Te $reater te proportion o' 'ie %o!t! !e to pro%e a pro%t8 te$reater te e$ree o' operatin$ +evera$e. T!8 te %o#pter-a!!i!te#an'a%trin$ #eto ti+iAe! a $reater e$ree o' operatin$ +evera$e.

Te $reater te e$ree o' operatin$ +evera$e8 te $reater te %an$e inoperatin$ in%o#e (+o!!) re+ative to a !#a++ '+%tation in !a+e! vo+#e. T!8 terei! a i$er e$ree o' varia&i+it, in operatin$ in%o#e i' operatin$ +evera$e i! i$.

4. Mana$e#ent !o+ e#p+o, te %o#pter-a!!i!te #an'a%trin$ #eto i' anna+!a+e! are epe%te to e%ee 6118111 nit! an te +a&or-inten!ive #an'a%trin$#eto i' anna+ !a+e! are not epe%te to e%ee 6118111 nit!.

5. 9oia%:! #ana$e#ent !o+ %on!ier #an, oter &!ine!! 'a%tor! oter tan

operatin$ +evera$e &e'ore !e+e%tin$ a #an'a%trin$ #eto. #on$ te!e are"

0aria&i+it, or n%ertaint, ;it re!pe%t to e#an

7/24/2019 Bus 503 Chapter 7 HW Solutions

3/4

*SE 7-54 (5/ MINUTES)

1. Te &reak-even point i! 183// patient-a,! %a+%+ate a! 'o++o;!"

SUSQUEHANNAMEDICALCENTER

COMPUTATIONOFBREAK-EVENPOINTINPATIENT-DAYS: PEDIATRICS

FORTHEYEARENDEDJUNE30, 20X6

Tota+ 'ie %o!t!"

Mei%a+ %enter %ar$e!......................................................................................... 6842/8///

Spervi!in$ nr!e! (6/8/// 4)....................................................................... 1/8///

Nr!e! (48/// 1/)..................................................................... 4/8///

i! (1/82// /)..................................................................... 18///

Tota+ 'ie %o!t! ............................................................................................. 48/58///

*ontri&tion #ar$in per patient-a,"

Revene per patient-a,....................................................................................... 6/

0aria&+e %o!t per patient-a,"(78//8/// 6/ > /8/// patient-a,!)(84//8/// /8/// patient-a,!).................................................................. 1/

*ontri&tion #ar$in per patient-a,.................................................................... 4/

Break-even pointin patient-a,!

)a,!patient183//

4/

48/58///

)a,-patientper#ar$inon%ontri&ti

%o!t!'i(e)tota+

7/24/2019 Bus 503 Chapter 7 HW Solutions

4/4

*SE 7-54 (*ONTINUE)

1. Net earnin$! ;o+ e%rea!e &, 728///8 %a+%+ate a! 'o++o;!"

SUSQUEHANNAMEDICALCENTER

COMPUTATIONOFLOSSFROMRENTALOFADDITIONAL20 BEDS: PEDIATRICS

FORTHEYEARENDEDJUNE30, 20X6

In%rea!e in revene

(/ aitiona+ &e! 3/ a,! 6/ %ar$e per a,).................................... 428///

In%rea!e in epen!e!"0aria&+e %ar$e! &, #ei%a+ %enter

(/ aitiona+ &e! 3/ a,! 1/ per a,)........................................... 18///

Cie %ar$e! &, #ei%a+ %enter

(6842/8/// / &e! > 528/// per &e)

(528/// / &e!)....................................................................................... 181/8///

Sa+arie!(/8/// patient-a,! &e'ore aitiona+ / &e! = / aitiona+

&e! 3/ a,! > 182//8 ;i% oe! not e%ee 8/// patient-a,!D

tere'ore8 no aitiona+ per!onne+ are re