Week 5: Break-even Analysis Assignment V2


The purpose of this assignment is to provide learners with the opportunity to develop break-even-analysis skills.

Week 5 Break Even Analysis Assignment and Guidelines V2

Links to an external site.

CO 2) Apply evidence based financial knowledge and skills within the context of holistic care principles and caring health environments. 
CO 3) Articulate the relationship between managerial and financial decision making and its implication within a culturally diverse healthcare organization and patient population. (POs 1 and 3)
CO 5) Analyze personal gaps in knowledge, skills, and competencies in healthcare financial principles that require further development.

Due Date: Sunday 11:59 p.m. MT at the end of Week 5

Students are given the opportunity to request an extension on assignments for emergent situations. Supporting documentation must be submitted to the assigned faculty. If the student’s request is not approved, the assignment is graded and a late penalty is applied as follows:


Answer the questions and complete the calculations required for the assignment.

Submit your answers on a Word document, with the heading of Week 5 Assignment. For the questions requiring a written response, answer directly on the assignment and adhere to proper grammar and syntax, and provide references. For the questions requiring calculations, show all of your work and follow the format that has been provided for the calculations in the lesson for Week 5. In addition, further explanations and formulas on the break-even analysis are contained in the required reading resources.

Key points for calculations

  • When performing calculations, standard rounding rules apply. If the number to the right of the decimal is less than 0.5, round down to the nearest whole number, e.g., 33.4 = 33 If the number to the right of the decimal is 0.5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
  • Read the question carefully. Pay close attention to the units be asked and keep them consistent. For example, days vs months vs years; charges vs contribution margin; dollars vs percentage
  • Provide ALL formulas with references. Designate which formula associates with which source. It is not sufficient to simply list the source at the beginning of the section. Write out the formula used BEFORE filling in the numbers. Formulas used should be taken from one of the required resources for this course.

Example: Total Contribution Margin (CM) = Contribution margin (CM) category 1 + CM cat 2 + CM 3

Leger, J.M. & Dunham-Taylor, J. (2018). Financial management for nurse managers: Merging the heart with the dollar, 4 th Ed. Burlington, MA: Jones-Bartlett.

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