Question: can you help me solve this; I'm stuck: Question #1 Assume a firm is considering the purchase of a new imagining machine. The details for
can you help me solve this; I'm stuck:
Question #1 Assume a firm is considering the purchase of a new imagining machine. The details for the machine are as follows: cost: $2,500,000; delivery: $61,000; sales tax: 2.5%; maintenance costs for the machine are fixed $70,000 in year 1 and increase at a rate of 7% annually (these costs do not vary with output); operating labor: 2 staff members are needed ($106,000 per staff member) to operate the machine for every 2,000 scans provided per year; the machine is expected to be useable for 7 years; after 7 years, the machine has a scrap value of $16,000; each scan completed results in $34 in variable costs.
Questions: 1) Please calculate the annual depreciation amount for this machine.
2) Please calculate the total fixed costs, semi-fixed costs, total variable costs, and total fixed costs for this firm for every 100 scans from 2,000 to 10,000 scans.
3) Please calculate the average fixed costs, average semi-fixed costs, average total variable costs, and average total costs for every 100 scans from 2,000 to 10,000 scans.
4) Please calculate the total revenue (P x Q) at price points of $106, $160, $205, $270, and $306.
5) Please calculate the total profits at each price point provided in 1.4.
6) Please graph the organizations AFC, ASFC, AVC, and ATC with each price point (for Q=2,000 to Q=10,000) and list a few conclusions from the illustration.
7) Please graph the organizations total profits for each price point and total costs (for Q=2,000 to Q=10,000) and list a few conclusions from the illustration.
Question #2 Using the information in question 1 (however, please assume the firm does not have any semifixed costs):
1) please mathematically calculate the following the breakeven volume for the following prices $160 $205 $270 2) please calculate the breakeven price for the following volumes: 2,005 2,401 5,002
3) Please recalculate the breakeven points in 2.1 and 2.2 with an economic profit of $205,000.
Question #4
Using the information in question 1 as well as the following information below please complete a project cash flow analysis (7 years of revenue). the non-profit firm sells 7,200 scans in year one and that volume sold increases by 3% annually; labor costs increase 7% annually; the tax rate is 6.1%; supply cost is the same as the variable costs for the firm; and that the payer information is as follows: Payer Reimbursement Annual reimbursement increase % of scans sold % scans nopayment Commercial $180 9% 40% 7% Medicare $151 3% 25% 3% Medicaid $106 -3% 30% 5% Uninsured $421 17% 5% 34%
Question #5 (Chapter 14) Using the information from the project cash flow analysis and assuming a cost of capital of 9%, please calculate the following and explain your answers in words. Payback period NPV IRR
Question #6 (Chapter 5) Please compute the contribution margin for each price point provided in Question #2.1
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
