How many employees by type does the clinic currently need?

Work station Time estimates (hours)

First Visit Return Visit
Reception/discharge 0.25 0.12
Nursing and testing 0.40 0.38
Medical exam and treatment 0.50 0.25


  • 8-2 Durham Health Clinic has a contribution margin of $35 per visit. Calculate the break-even point in visits with fixed costs at $4000, $6500, and $8500 per week. Given this analysis, as a manager, what would you recommend and why?
  • 8-3 Durham Health Clinic is considering signing a contract to perform 50 per-employment physicals per week for a specific corporation. In terms of staff time, a per-employment physical requires 0.20 hours in Reception/Discharge, 0.45 hours in Nursing and Testing, and 0.20 hours in Medical Examination. By work-station, determine how many work hours per week will be needed to perform these physicals.
  • 8-4 Currently the clinic does 250 visits per week, with 50% of all visits as return visits. Each employee (physician, nurse, and receptionist) is scheduled to work 35 hours per week.
  • a. How many employees by type does the clinic currently need?

    b. How many employees by type will the clinic need if it signs the contract for per-employment physicals?

    c. If return visits shift to 10% of all regular visits, how many employees by type will the clinic need with and without the contract for per-employment physicals?

    d. How will the answers to “b” and “c” change if the number of physicals is modified to 35 per-employment physicals per week?

    Throughout these analyses, specify all assumptions, including assumptions concerning worker productivity

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