| Cost shifting | Cost cutting | ||||||||||||||||
| Patients | Pay | Average cost per patient | Loss | Patients | Pay | Average cost per patient | Profit/ (Loss) | ||||||||||
| 15 | 2000 | 2000 | 0 | 15 | 2100 | 2000 | 1500 | ||||||||||
| 25 | 1800 | 2000 | -5000 | 25 | 2100 | 2000 | 2500 | ||||||||||
| 20 | 1600 | 2000 | -8000 | 20 | 2100 | 2000 | 2000 | ||||||||||
| 10 | 1500 | 2000 | -5000 | 10 | 2100 | 2000 | 1000 | ||||||||||
| 10 | 2000 | 2000 | 0 | 10 | 2100 | 2000 | 1000 | ||||||||||
| 10 | 0 | 2000 | -20000 | 10 | 0 | 2000 | -20000 | ||||||||||
| 10 | 0 | 2000 | -20000 | 10 | 0 | 2000 | -20000 | ||||||||||
| 100 | Charge necessary to recover your cost | -58000 | 100 | Amount of Cost needed to break even | -32000 | ||||||||||||
| Differential Cost Analysis | |||||||||||||||||
| Patients | Variable cost | Total variable cost | Fixed cost | Revenue | |||||||||||||
| 4000 | 200 | 800000 | 1600000 | 2000000 | |||||||||||||
| Contribution margin | 1200000 | ||||||||||||||||
| Net Profit/(Loss) | -400000 | ||||||||||||||||
| Since the net hospital makes a loss by including the program, it is advisable that it should drop the sleep disorder program. | |||||||||||||||||
| Breakeven Analysis | |||||||||||||||||
| Fixed Costs | 10000 | ||||||||||||||||
| Selling Price | 100 | ||||||||||||||||
| Variable Costs | 20 | ||||||||||||||||
| BEP (Units) | 125 | ||||||||||||||||
| BEP (Dollars) | 12500 | ||||||||||||||||
| CM in Percent | 80% | ||||||||||||||||
| CM in Dollars | 80 | ||||||||||||||||
| Job Order Costing | |||||||||||||||||
| Procedure | Projected Volume | Labour in Minutes | Supply Expense | RVU | Total RVU | Cost Per RVU | Cost Per Procedure | ||||||||||
| Amylase | 4000 | 15 | 75 | 300 | 1200000 | 0.2880184332 | 86.4055299539 | ||||||||||
| Bleeding time | 5000 | 12 | 50 | 200 | 1000000 | 0.2880184332 | 57.6036866359 | ||||||||||
| Uric acid | 3000 | 10 | 50 | 200 | 600000 | 0.2880184332 | 57.6036866359 | ||||||||||
| Platelet count | 7800 | 9 | 25 | 100 | 780000 | 0.2880184332 | 28.801843318 | ||||||||||
| Hematocrit | 7600 | 8 | 25 | 100 | 760000 | 0.2880184332 | 28.801843318 | ||||||||||
| 4340000 | |||||||||||||||||
| Activity Based Costing | |||||||||||||||||
| Activity | Projected Volume | Labor Expense ($) | Supply Expense ($) | Visit Minutes | Total Sample Direct Cost | GCD | RVUs | Total Sample Direct Cost | GCD | Cost Driver | Total RVUs | Total Cost Driver | Direct Cost Per RVU | Indirect Cost Per Cost Driver | Direct Cost Per Visit | Indirect Cost Per Visit | Total Cost Per Visit |
| Evaluation | 4000 | 30 | 10 | 60 | 40 | 5 | 8 | 60 | 10 | 6 | 32000 | 24000 | 3.9473684211 | 5.5555555556 | 31.5789473684 | 23.6842105263 | 55.2631578947 |
| Education | 3000 | 50 | 20 | 40 | 70 | 5 | 14 | 40 | 10 | 4 | 42000 | 12000 | 3.9473684211 | 5.5555555556 | 55.2631578947 | 15.7894736842 | 71.0526315789 |
| Exercise | 2000 | 5 | 0 | 90 | 5 | 5 | 1 | 90 | 10 | 9 | 2000 | 18000 | 3.9473684211 | 5.5555555556 | 3.9473684211 | 35.5263157895 | 39.4736842105 |
| 76000 | 54000 |
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