Art #1 dr. jones is interested in expanding his practice


art #1

Dr. Jones is

interested in expanding his practice by

add

ing

a piece of radiology equipment.

The basic

cost of the equipment would be $79,000 for the first year.

The monthly loan cost for this equipment

is $1,5

64.29 for five years.

Additionally Dr. Jones

will have to

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 is no fixed costs

associated with this purchase.

You

help Dr. Jones

determine that

the office will

do 1100 studies per year with an average

reimbursement of $51.63.

The variable cost per study is $3.24.

Using the standard pro forma sheet, is this a good purchase?

Part #2

Art #1 dr. jones is interested in expanding his practice


art #1

Dr. Jones is

interested in expanding his practice by

add

ing

a piece of radiology equipment.

The basic

cost of the equipment would be $79,000 for the first year.

The monthly loan cost for this equipment

is $1,5

64.29 for five years.

Additionally Dr. Jones

will have to

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 is no fixed costs

associated with this purchase.

You

help Dr. Jones

determine that

the office will

do 1100 studies per year with an average

reimbursement of $51.63.

The variable cost per study is $3.24.

Using the standard pro forma sheet, is this a good purchase?

Part #2

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