ENG 492 Break-Even Analysis – Assignment Solution
Discuss the importance of a break-even analysis when making a decision to lease or buy a piece of equipment. Research and provide an example of a break-even analysis conducted in a health care organization. Complete the following:
- Prepare a strategic assessment of the sample break-even analysis you researched. Within your assessment, discuss when it is appropriate to use a break even analysis and how a break even analysis is done.
- Analyze the financial data in the sample break even analysis and explain the potential implications for the health care institution. Discuss the role of fixed and variable costs in the break even analysis and how indirect costs and profit are factored into the analysis.
- Evaluate the probable priorities and expectations of stakeholders surrounding this break even analysis.
- Discuss if you would develop a strategic plan to move forward based on the sample break even analysis.
- Explain how the sample break even analysis might be used to make a long-term financial decision.
- Assess the potential financial impact of the sample break even analysis as it relates to organizational strategy, patient care, or community health.