2 3 5 4 SSIE538 Exec 2019 Class Work #2 1. Quickscan, a radiology service company, operates costs $500,000. Quickscan assumes 5 years as the lifetime of the machine, for all accounting purposes. The company rents a building for the MRI facility at a cost of $30,000 per year. Total variable cost for each MRI scan, including costs of technician, materials and utilities, is estimated to be $200. MRI facility. The MRI machine an The company estimates there would be 2000 scans done on an average on their machine per year (a) Estimate the total average cost per scan for Quickscan. (b) Assume that the capacity of the MRI machine is 3000 scans per year. What would be average cost per scan at this demand of 3000? (c) Assume that at the demand of 2000, the company is costing and hence pricing their product. The capacity of the MRI is 3000. If six months from the beginning of the year, an insurance company talks to the company to see if it can take 500 additional cases, at $230 per scan. The company thinks that they have enough capacity until the end of the year to accommodate those additional scans. Should they accept the insurance company offer or not? Explain. 2. A local hosnital has a radiology denartment Recentlur tho donart