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Question - Ontario Radiology Group plans to invest in a new CT scanner. The group estimates $1,500 net revenue per scan. Preliminary market assessments indicate that demand will be less than 5,000 scans per year. The group is considering a scanner that would result in total fixed costs of $800,000 and can yield a profit of $450,000 per year at a volume of 5,000 scans.
Required -
A) What is the break-even volume (# of Scans)?
B) If the group wants to earn a profit of $300,000 per year, how many scans does it needs for the coming year?
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Relevant and sunk costs McKinnon Company's plant manager is considering buying a new grinding machine to replace an old grinding machine or overhauling the old one to ensure compliance with the plant's high-quality standards. The following data ar..
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