What is the implied variable cost rate for scanner a

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Reference no: EM131975158

Problem

Seattle 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 (Scanner A) that would result in total fixed costs of $1,000,000 and would yield a profit of $500,000 per year at a volume of 5,000 scans. What is the implied variable cost rate (variable cost per scan) for Scanner A?

Reference no: EM131975158

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