Question: 1. If you are management, would you consider an additional mark-up on the charges imposed on CT Scan of abdomen and pelvis in order to

1. If you are management, would you consider an additional mark-up on the charges imposed on CT Scan of abdomen and pelvis in order to recover the additional cost incurred from using Breeza over the traditional flavor enhancer in CT Scan procedures? Note that with this additional mark-up, the BEP in units will remain at the same level for both the traditional flavor enhancer and Breeza. Thus, no additional ct scan procedures are required to be performed with Breeza in order to Break-Even.
2. If you are management, will you lease or purchase the MRI Facility? Why or why not. Kindly consider other factors aside from the financial considerations.
 1. If you are management, would you consider an additional mark-up
on the charges imposed on CT Scan of abdomen and pelvis in

CT Scan Xray MRI TOTAL Nuclear Medicine 25% 27% 33% 15% 100% RADIOLOGY DEPARTMENT Percent Distribution FIXED COSTS PER SCAN Supervisor Wages 14,275 17,447 7,931 13,218 $52,870 Radiology Equip Services Office Equip Services Other Repairs & Maintenance Depreciation or Lease Costs Janitorial Services Building Maintenance Fixed Building Costs Insurance Utilities Expense Marketing Expense Miscellaneous Expense Total Fixed Costs 88,102 107,680 48,946 2,599 3,177 1,444 2,150 2,628 1,194 180,000 220,000 100,000 12,500 15,278 6,944 1,000 1,222 556 15,000 18,333 8,333 10,421 12,737 5,789 11,000 3,444 6,111 1,000/ 1,222 556 9,309 11,367 5,167 347,347 424,535 192,971 81,576 326,304 2,406 9,626 1,991 7,963 166,667 666,667 11,574 46,296 926 3,704 13,889 55,556 9,649 38,596 10,185 40,741 3,704 8,611 34,444 321,618 1,286,470 926 Additional Scans (per yr) Needed to Breakeven Under Various Assumptions Variable Variable Revenue Costs per Costs per Fixed Costs per Scan Scan w/o Scan with Breeza Breeza $340,000 $345,000 $350,000 $355,000 $360,000 $350 $100 $105 27 28 28 29 29 $350 $105 $110 28 29 29 30 30 $350 $110 $115 30 30 31 31 31 $400 $100 $105 19 19 19 20 20 $400 $105 $110 20 20 20 20 21 $400 $110 $115 20 21 21 21 21 $450 $100 $105 14 14 14 15 $450 $105 $110 14 15 15 15 $450 $110 $115 15 15 16 $500 $100 $105 11 11 11 11 11 $500 $105 $110 11 11 $500 $110 $115 11 11 11 12 12 14 14 15 15 11 11 11 CT Scan Xray MRI TOTAL Nuclear Medicine 25% 27% 33% 15% 100% RADIOLOGY DEPARTMENT Percent Distribution FIXED COSTS PER SCAN Supervisor Wages 14,275 17,447 7,931 13,218 $52,870 Radiology Equip Services Office Equip Services Other Repairs & Maintenance Depreciation or Lease Costs Janitorial Services Building Maintenance Fixed Building Costs Insurance Utilities Expense Marketing Expense Miscellaneous Expense Total Fixed Costs 88,102 107,680 48,946 2,599 3,177 1,444 2,150 2,628 1,194 180,000 220,000 100,000 12,500 15,278 6,944 1,000 1,222 556 15,000 18,333 8,333 10,421 12,737 5,789 11,000 3,444 6,111 1,000/ 1,222 556 9,309 11,367 5,167 347,347 424,535 192,971 81,576 326,304 2,406 9,626 1,991 7,963 166,667 666,667 11,574 46,296 926 3,704 13,889 55,556 9,649 38,596 10,185 40,741 3,704 8,611 34,444 321,618 1,286,470 926 Additional Scans (per yr) Needed to Breakeven Under Various Assumptions Variable Variable Revenue Costs per Costs per Fixed Costs per Scan Scan w/o Scan with Breeza Breeza $340,000 $345,000 $350,000 $355,000 $360,000 $350 $100 $105 27 28 28 29 29 $350 $105 $110 28 29 29 30 30 $350 $110 $115 30 30 31 31 31 $400 $100 $105 19 19 19 20 20 $400 $105 $110 20 20 20 20 21 $400 $110 $115 20 21 21 21 21 $450 $100 $105 14 14 14 15 $450 $105 $110 14 15 15 15 $450 $110 $115 15 15 16 $500 $100 $105 11 11 11 11 11 $500 $105 $110 11 11 $500 $110 $115 11 11 11 12 12 14 14 15 15 11 11 11

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!