Instructions You Have Been Hired As The Manager For A New Cl

Question

Instructionsyou Have Been Hired As The Manager For A New Clinical Lab You have been hired as the manager for a new clinical lab company in the Atlanta metropolitan area. The lab is a nonprofit that serves low-income patients in the downtown area. The lab is in the process of setting its fees-for-services on individual services. The clinic director has estimated fixed costs of $436,000, a volume of 18,500 tests, and variable cost rate of $19. She has asked you to prepare a PowerPoint presentation for the lab’s board of directors, explaining variable and fixed costs for healthcare services in the lab. Prepare a 7 to 10 slide PowerPoint that explains the following items. · Figure the price breakeven for the clinic. · List and explain fixed costs that the lab will have. · List and explain variable costs per visit that the lab will encounter. · The board will need to be aware that pricing may change if estimated costs are not accurate. If fixed costs end up being $397,500, how will the price breakeven change? · Explain how these pricing or volume changes may affect the lab. Use your imagination or do whatever research is necessary to come up with some of the fixed and variable costs to present to the board. Feel free to use any graphics or images in your project that you feel would enhance the presentation. You are required to use the Notes section of PowerPoint to explain information on the slides to the board. You are required to use at least your textbook for the assignment.

Dr. Jack HW Helper · Accepted Answer

Introduction to Cost Structures in Healthcare Laboratories Understanding the financial underpinnings of healthcare laboratories is essential for establishing sustainable pricing strategies. Fixed and variable costs form the core of cost analysis, influencing decisions on service pricing, volume, and overall financial stability. In a nonprofit clinical laboratory serving low-income populations, transparent communication about these costs is vital to ensure that the laboratory meets its mission without compromising financial viability. Fixed and Variable Costs in a Clinical Laboratory Fixed costs are expenses that remain constant regardless of the volume of tests performed. They include rent, salaries of permanent staff, insurance, and depreciation of equipment. In this scenario, the estimated fixed costs are $436,000, which covers necessary operational expenses that must be paid irrespective of testing volume. If fixed costs decrease to $397,500, the breakeven point will correspondingly decrease, influencing pricing strategies to ensure sustainability. Variable costs, on the other hand, fluctuate directly with the number of tests conducted. These include reagents, consumables, and per-test labor costs. With a variable cost rate of $19 per test, the total variable expense increases proportionally with test volume. Understanding these costs helps in setting appropriate price points to cover expenses and generate needed revenue. Calculating the Breakeven Price The breakeven point occurs when total revenues equal total costs. The formula for breakeven price per test is: Price per test = (Fixed Costs) / (Number of Tests) + Variable Cost per Test = $436,000 / 18,500 + $19 ≈ $23.52 + $19 ≈ $42.52 If fixed costs are reduced to $397,500, the breakeven price becomes: Price per test = $397,500 / 18,500 + $19 ≈ $21.50 + $19 ≈ $40.50 These calculations are vital for setting initial prices to ensure the lab can cover costs and operate sustainably. Implications of Cost Changes and

Instructions You Have Been Hired As The Manager For A New Cl

Instructionsyou Have Been Hired As The Manager For A New Clinical Lab

Paper For Above instruction

Introduction to Cost Structures in Healthcare Laboratories

Fixed and Variable Costs in a Clinical Laboratory

Calculating the Breakeven Price

Implications of Cost Changes and Pricing Strategies

Conclusion

References