Bridgestone Behavioral Health and Addiction Center

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DATE: March 13, 2004 TO: Dr. Thomas Russel, Director Bridgestone Behavioral Health and Addiction Center FROM: RE: Analysis of Cost-Volume and Profit for the different department of the institution Thank you for allowing me the opportunity to work with your company. Your decision to hire a consultant has led me into volunteering to assess your current Cost-Volume and Profit trouble in reaching your breakeven point and gaining profit thus you are seem troubled to have an operating loss. My analysis is based from the computations of your breakeven point, weighted average contribution margin and margin of safety. Based on the assessment that I have made I have come into the following conclusions: Allocating the right bulk of percentages to the different departments based from how much income are they contributing to the institution. Eliminating some fixed costs incurred through removing the discretionary fixed costs and allowing having some possible alternatives to gain profit for the organization. Combining and removing some department which almost have the similar activities and eliminating which always just gives the company more expense than an income. I will present my analysis in through the three course of actions and showing the computations I have made to prove my explanations on how a course of action is greatly affecting your institution and preventing such losses to happen. I. Introduction The Bridgestone Behavioral Health and Addiction Center is a medical center that caters to outpatient substance abuse treatment center. It is one of leading institutions when it comes to alcohol and other substance abuse treatment since they have state of the art facilities, highly trained and family-like staffs, expert doctors and most especially they have different units that specializes for the different cases of their

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