“Assignment 2: Course Project Task 4Analyze Cost Behavior and
Calculate Breakeven Analyses
In this assignment, you will carry out a profit analysis for the
SMH facility. Focus the analysis on a specific product line. You will develop
a cost-volume-profit template to help measure costs and changes to variable
and indirect costs using SMH data. Through this assignment, you will become
familiar with the concepts of breakeven point, contribution margin, and
operating leverage.
You will prepare a report that compares your findings on costs
and changes to variable and indirect costs. Include the potential financial
benefits the facility might realize if it incorporated changes to the revenue
or cost structure.
For your analysis, you can use the SMH data file, which you had
downloaded from the Doc Sharing area.
Using the SMH data file you will do the following:

Develop a
template of costs. You should separate expenses into variable and fixed
expenses. The SMH data file contains a template to provide some
guidance.

Calculate the
breakeven point in patient days.
Note: Breakeven point = Total fixed cost / (per patient day revenue
per patient day variable expenses)

Calculate the
breakeven point assuming a 5 percent increase in clinical salaries and a
4 percent increase in officer salaries.

A physician
wants to add a new procedure that will increase direct patient care
expense by $200 per day. What is the impact on GP and the breakeven
point? Provide your comments.

The hospital
is considering hiring a physician. This will increase annual costs by
$250,000. However, with the addition of this physician, it is
anticipated that patient days will increase by 6 percent. Is this a good
move for the hospital? Provide your comments.

Many times it
is difficult to determine if a cost is variable or fixed. In addition,
costs may be variable, but only in a relevant range. Do you agree with
the categorization of costs as they are presented on the template in the
SMH data file? Would you recommend changes? What additional information
would help you analyze the data? Provide your comments.

Write a 3- to 5-page report in Word format. Apply current APA
standards for writing style to your work. All written assignments and
responses should follow APA rules for attributing sources.
Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.
By Wednesday, September 25, 2013, submit your assignment
to the M4: Assignment 2 Dropbox.
Voluntary Discussion
You have the option of discussing your work with your
classmates. To use this option, you need to submit your assignment to the Discussion
Area below. Through the week, you can share your thoughts about your
project and offer your review and comments to others who are also seeking
input on their work.

Assignment 2 Grading
Criteria

Maximum Points

Developed accurate profit analysis for the SMH facility with a
focus on a specific product line.

32

Wrote in a clear, concise, and organized manner; demonstrated
ethical scholarship in accurate representation and attribution of sources,
displayed accurate spelling, grammar, and punctuation.

4

Total:

36

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Assignment 2: Course Project Task 4Analyze Cost Behavior and
Calculate Breakeven AnalysesIn this assignment, you will carry out a profit analysis for the
SMH facility. Focus the analysis on a specific product line. You will develop
a cost-volume-profit template to help measure costs and changes to variable
and indirect costs using SMH data. Through this assignment, you will become
familiar with the concepts of breakeven point, contribution margin, and
operating leverage.You will prepare a report that compares your findings on costs
and changes to variable and indirect costs. Include the potential financial
benefits the facility might realize if it incorporated changes to the revenue
or cost structure.For your analysis, you can use the SMH data file, which you had
downloaded from the Doc Sharing area.Using the SMH data file you will do the following:Write a 3- to 5-page report in Word format. Apply current APA
standards for writing style to your work. All written assignments and
responses should follow APA rules for attributing sources.
Use the following file naming convention: LastnameFirstInitial_M4_A2.doc.By Wednesday, September 25, 2013, submit your assignment
to the M4: Assignment 2 Dropbox.Voluntary DiscussionYou have the option of discussing your work with your
classmates. To use this option, you need to submit your assignment to the Discussion
Area below. Through the week, you can share your thoughts about your
project and offer your review and comments to others who are also seeking
input on their work.Assignment 2 Grading
CriteriaMaximum PointsDeveloped accurate profit analysis for the SMH facility with a
focus on a specific product line.32Wrote in a clear, concise, and organized manner; demonstrated
ethical scholarship in accurate representation and attribution of sources,
displayed accurate spelling, grammar, and punctuation.4Total:36.0/msohtmlclip1/01/clip_image001.gif”” alt=””Help desk 1-888-720-6654″”>”