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.
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