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1.An imaging center has the following information:

Revenue per test: $225
Variable cost per test: $150
Total fixed costs: $225,000
Estimated number of tests = 3,500

Calculate the a) Contribution Margin; b) Total dollar contribution margin; and, c) Contribution Margin percentage.

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2.Your hospital has the following revenue for the months of July-September: July $3,000,000 August $2,500,000 September $4,000,000. If 30% of the month’s revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July’s revenue is collected in August? 


3. Accounts receivables can constitute more than 50% of a healthcare organization’s current assets. Managing accounts receivables is critical to the cash flow of the organization. If you were a billing manager what should you consider when implementing credit and collection policies? (Hint: Provide an example of a financial report then explain in detail the steps in the financial analysis process).


4. Provide an example of a financial report and then explain in detail the steps in the financial analysis process


5. A competitive hospital maintains current equipment and purchases new in order to stay current with the latest technology. If you were evaluating the capital budget performance of a hospital what factors would you consider justifying taking on more debt to purchase new equipment for a surgical unit? 


6.Explain in detail some of the biggest environmental challenges of the future for healthcare financial managers.

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