The estimated total variable costs for the one-year period were $52,000.
We now use the Break-Even Analysis formula of: Q = FC / (P -- VC), to determine the basic standards for generating a profit. Inside the formula, Q stood for the quantity of service visits required to break even. While, at the same time: FC denoted the fixed cost for the project, P is the prices charged for the various services and VC is the variable cost per visit. At which point, we divided the total variable costs by: expected number of visits ($52,000 / 4000). Once this took place, we came up with a VC of $13. Entering all the values into the formula gave us a result for Q. Of 8,064. Thus, 8,064 visits are required for the hospital to break even. In order to generate any kind of operating profits, they must go beyond this number every single year.
This was the point that IMS had to decide, whether the community (where the new facility is being proposed) has enough population to: make required number of visits and if they would be able to easily obtain...
Capital Project According to the AMA, capital budgeting is "the decision-making process used by companies to evaluate long-term investments in large capital assets" (Hampton, 2011). Zeit (2013) makes the point that construction projects are included in the category of capital investment decisions, and that designers and architects are often involved. Reiter et al. (2000) argue that because of their size and critical strategic nature, "capital investment decisions are among the most
Capital Project The simulation mannequin is an important part of nursing training, so is a valuable asset to a nursing college. The cost of the mannequin is $10,000. This is just one of many pieces of equipment that are required for the running of a high quality nursing college. There is a considerable body of research that supports the use of high quality simulation mannequins in medical training. One study showed
The risk of the project is another key consideration. The net present value calculation is based on a set of assumptions about the future cash flows. However, the sensitivity of these cash flows to external or internal events may vary from project to project. Managers and shareholders are often risk averse in nature, therefore the relative risk level of the plant expansion will be taken into consideration prior to project
When a range of options are presented to management, the capital budgeting process must be used to determine the costs and cash flows associated with each option. However, the capital budgeting process is only as valuable as the inputs and assumptions. If the assumptions are not grounded in reasonable analysis and quality research, the process will not yield a valuable result. If the numbers that are input into the
To date, little research exists on the actual costs and benefits of project management. Much of the information that exists is a product of advertising materials distributed through the project management firms. Little unbiased information regarding the value of project management exists. This research will provide an unbiased view of the benefits and costs of the project manager. Aviation managers will be able to use this information to make decisions
" There are several benefits that a global consumer electronic firm could derive from inter-project learning. First, inter-project learning allows firm to enhance project completeness. Prencipe, & Tell (2001) argue that inter-project learning allows firms to execute a project in a best method. In the present competitive market environment, project is the key to the dynamic competitive capabilities. Typically, accumulation of knowledge builds project competencies, which could enhances market performances of a
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