Dr. Jones is interested in expanding his practice by adding a piece of radiology equipment. The basic costs of the equipment would be $79,000 for the first year. The monthly loan cost for this equipment is $1,564.29 for five years. Additionally, Dr. Jones must factor in the cost to hire a radiology tech with a predicted $ 39,600 annual salary (this includes all taxes and fringe benefits). The office already has a radiology room, so there are no fixed cost associated with this purchase.

You help Dr. Jones determine that the office will do1100 studies per year with an average reimbursement of $51.63. The variable cost per study is $3.24.

A; Complete the table below:

B; Determine whether this was a good purchase and explain why or why not.

Monthly Cost Maintenance Salary Fixed Costs Variable Costs Total Costs Reimbursement Profit or Loss Year 1 Type answer here Type answer here Type answer here Type answer here Type answer here Type answer here Type answer here Type answer here