What is the implied variable cost rate

Assignment Help Finance Basics
Reference no: EM131435149

Seattle Grace Hospital plans to invest in a new piece of CT imaging equipment. The hospital estimates that it can bill $1,600 per scan. Preliminary market assessments indicate that demand will be fewer than 5,000 scans per year. The hospital is considering a scanner (scanner A) that will result in total fixed costs of $1 million per year and would yield a profit of $500,000 if the hospital produced and billed for 5,000 scans. What is the implied variable cost rate (variable cost per scan) for scanner A?

Reference no: EM131435149

Questions Cloud

Inpatient cost for population : Furthermore, it plans to pay contracting hospitals $900 per inpatient day for care provided. What is the per member per month (PMPM) inpatient cost for this population?
Write important project documents for a service type project : In this option, you will develop, compile, and write important project documents for a service type project with an international component in a company or non-profit organization that you have selected.
What price should be set under full cost pricing : Here are the key assumptions: annual fixed direct costs = $40,000, annual overhead allocation = $10,000, variable cost per test = $8, and expected volume = 10,000 tests. What price should be set under full cost pricing?
Housekeeping department of micanopy hospital : The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A = 3,000 square feet, Department B = 2,000 square feet, Department C..
What is the implied variable cost rate : The hospital is considering a scanner (scanner A) that will result in total fixed costs of $1 million per year and would yield a profit of $500,000 if the hospital produced and billed for 5,000 scans. What is the implied variable cost rate (variab..
What did you initially think about the black man : When you first watched "The Lunch Date," what did you initially think about the black man at the diner? How did you perceive his behavior? Did you perceive him as doing anything 'wrong
Environment is standardized using group policy : Assume you have been tasked with implementing Group Policy for 100 computers and over 120 end users. You need to ensure that most of the computer and end users’ environment is standardized using Group Policy. What are your most important concerns and..
What is the cost variance for chatham clinic : What is the cost variance for Chatham Clinic?
Flute is designed so that it produces a frequency of 261.6hz : A flute is designed so that it produces a frequency of 261.6 Hz when all the holes are covered and the temperature is 20 degree C. Consider the flute as a pipe that is open at bothe the ends. find the length of the flute assuming the middle C as t..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price of the stock today

If the required return is 12 percent, what is the price of the stock today?

  One of the major complaints regarding foreign exchange

one of the major complaints regarding foreign exchange rates and flexible exchange rates is that the exchange rates are

  Arranged for a loan on your new car

You have arranged for a loan on your new car that will require the first payment today. The loan is for $39,500, and the monthly payments are $700.

  Develop a long term financial plan

Develop a long term financial plan that is expected to be in place after the initial growth phase of the business. IE what is a sustainable amount of revenue and costs for Footgolf Australia in the long term and can you achieve the lifestyle objec..

  Assigned company financial statements

Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks:

  What would be the yield to maturity

Fitz's 25-year bond pays 11% interest annually on a $1,000 par value. If bonds sell at $845, what is the bond's yield to maturity? What would be the yield to maturity if the bond paid interest semiannually?

  Calculate the npv of each choice

The Bell Mountain's opportunity cost of capital is 11.8 percent, and the costs and values of investments made at different times in the future

  Then 5 months before maturity sue sellsthe note to b

marilyn borrows 600 from sue on february 14 2010 for 11 months at11.5 simple interest. then 5 months before maturity

  Problem regarding the interest-on-interest

Interest-on-Interest Consider a $2,000 deposit earning 6 percent interest per year for 5 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

  Calculate the unearned interest

You financed $10,500 and are making regular payments of $285.00 over the 4 year life of the loan. You would like to pay off the loan a year early. Calculate the unearned interest by.

  Students will analyze financial reports of yahoo inc

Students will analyze financial reports of Yahoo Inc & present their findings in a PowerPoint presentation

  What is the current cost of equity capital for the firm

The weighted average cost of capital for a firm (assuming all three Modigliani and Miller assumptions apply) is 15 percent. What is the current cost of equity capital for the firm if its cost of debt is 8 percent and the proportion of debt to tota..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd