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  • Example of a breakeven analysis

    A breakeven analysis or return on investment allows you to determine the point at which your facility can expect to recover the cost of an investment. Simply stated, how many procedures will you have to do to begin making a profit? Initially, the cost of doing a new procedure will usually exceed the revenue earned by the facility for the new procedure. At the breakeven point, total revenue equals total costs. After the breakeven point, all procedures done result in profit for your facility as the total revenue received for the procedure exceeds the costs of the procedure. When it is determined how many procedures are needed to breakeven, a prediction can be made about how long in months or years it will take to being producing profit.

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