Calculating break-even point and graphing. The North Kingstown Cancer infusion therapy division expects tremendous growth over the next year and is projecting the following cost and rate structure for the service.
Revenues $900 per patient
Costs
Rent $4,200 per month
Staff $220,000 per month
Leases $15,000 per month
Other fixed costs $30,000 per month
Pharmaceuticals $700 per patient
Intravenous supplies $45 per patient
Other patient supplies $35 per patient
a. What volume of patients per month will it take for the center to break even?
b. What is the break-even point in dollars?
c. Graph the above scenario, using a range of 0 to 2,500 patients in 500-patient increments.
d. If the clinic needs to make a profit of $85,000 per month, what is the new break-even point in volume per month?
e. If the clinic needs to make a profit of $85,000 per month, what is the new break-even point in revenue?