HSA 525 Assignment 2

HSA 525 Assignment 2

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Respond to each assignment exercise and label the response:


• Assignment Exercise 7-2: Calculating the Contribution Margin

The Mental Health program for the Community Center has just completed its fiscal year end. The program director determines that his program has revenue for the year of
$1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense amounts to $1,100,000.

1. Compute the contribution margin for the Community Center Mental Health Program.
2. What does the results tell you about the program?


• Assignment Exercise 7-3: Calculating the PV Ratio

The profit-volume (PV) ratio is also known as the contribution margin (CM) ratio. Use the same assumption for the Community Center Mental Health Program. In addition
to the contribution margin figures already computed, now compute the PV ratio (also known as the CM ratio).

• Assignment Exercise 9-2: FTEs to Fill a Position

Metropolis Health System (MHS) uses a basic work week of 40 hours throughout the system. Thus, one full-time employee works 40 h0urs per week. MHS also uses a standard
24-hour scheduling system of three 8-hour shifts. The Director of Nursing needs to compute the staffing requirements to fill the Operating Room (OR) positions. Since
MHS is a trauma center, the OR is staffed 24-hours a day, 7 days a week. At present, staffing is identical for all 7 days of the week, although the Director of Nursing
is questioning the deficiency of this method.
The operating Room department is staffed with two nursing supervisors on the day shift and one nursing supervisor apiece on the evening and night shifts. There are two
technicians on the day shift, two technicians on the evening shift, and one technician on the night shift. There are three RN’s on the day shift, two RN’s on the
evening shift, and one RN plus one LPN on the night shift. In addition, there is one clerical worker on the day shift only.

1. Set up a staffing requirements worksheet, using the format in Exhibit 9-4.
2. Compute the number of FTE’s required to fill the Operating Room staffing positions.


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