Sharp Hospital is deciding between which lab analyzer to buy for the chemistry department in the centralized core laboratory . The vendors have provided numerous equipment options with varying up front capital costs. The larger , more powerful analyzers will have higher fixed costs but require less manual labor (variable costs) as the volume of patient samples is increased. See the proposals noted below . If Sharp plans to have a volume of 11,000 patient samples processed in the laboratory, which equipment should they purchase ( if any) ? Variable Cost ProductTotal Fixed Cost Per Unit No Equipment $$ 200 Equipment A $ 150, 000 $ 75 Equipment B $300,000$ 50 Equipment C $ 550,000$ 25

Sharp Hospital is deciding between which lab analyzer to buy for the chemistry department in the centralized core laboratory. The vendors have provided numerous equipment options with varying up front capital costs. The larger, more powerful, analyzers will have higher fixed costs but require less manual labor (variable costs) as the volume of patient samples is Encreased. See the proposals noted below. If Sharp plans to have a volume of 11,000 patient samples processed in the laboratory, which equipment should they purchase (if any)? Product No Equipment Equipment A Equipment B Equipment C Total Fixed Cost $ $ $ 0 Variable Cost Per Unit $ 150,000 $ 300,000 $ 550,000 $ 200 75 50 25 Not enough info provided to answer this question O Equipment A O Do not buy new equipment, continue using manual labor Equipment C O Equipment B