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    Med First Solved

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    Med-First is a medical facility considering offering mammography screening tests. The annual fixed cost for equipment and skills is $100,000. Variable cost per patient is $150. If the clinic charges $250 per test, it needs to process 200 patients per year to break even. Tasty Ice Cream considers offering hot chocolate. With $1000 fixed costs and $1.50 variable costs per cup, selling 150 cups per year would allow it to break even. Slick Pads considers making printers. With $200,000 fixed costs and $100 variable costs, it needs to sell 3000 printers to break even. It also needs to consider product, process, facility, and inventory factors for the decision.

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    Med First Solved

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    Med-First is a medical facility considering offering mammography screening tests. The annual fixed cost for equipment and skills is $100,000. Variable cost per patient is $150. If the clinic charges $250 per test, it needs to process 200 patients per year to break even. Tasty Ice Cream considers offering hot chocolate. With $1000 fixed costs and $1.50 variable costs per cup, selling 150 cups per year would allow it to break even. Slick Pads considers making printers. With $200,000 fixed costs and $100 variable costs, it needs to sell 3000 printers to break even. It also needs to consider product, process, facility, and inventory factors for the decision.

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    Med-First is a medical facility considering offering mammography screening tests. The annual fixed cost for equipment and skills is $100,000. Variable cost per patient is $150. If the clinic charges $250 per test, it needs to process 200 patients per year to break even. Tasty Ice Cream considers offering hot chocolate. With $1000 fixed costs and $1.50 variable costs per cup, selling 150 cups per year would allow it to break even. Slick Pads considers making printers. With $200,000 fixed costs and $100 variable costs, it needs to sell 3000 printers to break even. It also needs to consider product, process, facility, and inventory factors for the decision.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    40 views6 pages

    Med First Solved

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    Med-First is a medical facility considering offering mammography screening tests. The annual fixed cost for equipment and skills is $100,000. Variable cost per patient is $150. If the clinic charges $250 per test, it needs to process 200 patients per year to break even. Tasty Ice Cream considers offering hot chocolate. With $1000 fixed costs and $1.50 variable costs per cup, selling 150 cups per year would allow it to break even. Slick Pads considers making printers. With $200,000 fixed costs and $100 variable costs, it needs to sell 3000 printers to break even. It also needs to consider product, process, facility, and inventory factors for the decision.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 6

    Med-First is a medical facility that offers outpatient medical services.

    The facility is
    considering offering an additional service, mammography screening test. The facility
    estimates the annual fixed cost of the equipment and skills necessary to be $!" """."".
    #ariable cost for each patient processed are estimated at $$%."" per patient. &f the clinic
    plans to charge $%%."" for each screening test, ho' many patients must it process a year
    in order to break-even(
    )reak-even formula * Fixed +ost
    ,elling -rice-#ariable +ost

    ,o. !" """/0%%-$%1 * 2 """ patients/year to break-even.

    )3456 4#47 57589,&, +58+:85T;3



    7ote. -oint of &ndiference, is 'here the cost of t'o processes is equal. &f demand is
    expected to be less than the point of indiference value then the process 'ith the lo'est
    fixed cost should be selected.
    &f demand is expected to be greater than the point of indiference value, then the process
    'ith the lo'est variable cost should be selected.

    $. Tasty &ce +ream is a year round take out ice cream restaurant that is considering
    offering an additional product, hot chocolate. +onsidering the additional machine it
    'ould need plus cups and ingredients it estimates.
    Fixed +ost. $!""."" per year <
    #ariable +ost. $ ".!"
    &t charges. ,elling -rice $ ."" per =ot +hocolate. =o' many chocolates does it need to
    sell in order to break-even(

    )reak-even * >>>F>>> * !""/ - ".!" * !%" =ot +hocolate.
    ,- - #+




















    ?. ,lick -ads is a company that manufactures 8ap Top notebook computers. The
    company is considering adding its o'n line of computer printers.
    Fixed +ost. $ %"" """.""
    #ariable +ost. $ !"".""
    a1 &f the company plans to offer the -rinter at
    ,elling -rice. $$%"."". =o' many -rinters does it have to sell to )reak-4ven(
    b1 @escribe the types of operations considerations that the company needs to consider
    before making the final decision.

    a1 )reak-even * %"" """/$%" - !"" * $$$$.$$ or $$$? -rinters.



















    b1 ;perations +onsiderations.
    -roduct. @esignA MaterialsA 8ookA Market
    -rocess. ,election. +ontinuous or )atch etc. FacilityA 8ocationA &nventory etc.

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