Question

Dr. Jones' office has purchased the above equipment. It is now Year #2 and there is a $7,000 annual maintenance fee that needs to be added to the costs of the equipment. The variable cost is now $3.37 per study, but Dr. Jones' office is planning on doing 1675 studies because there has been an addition of two new managed contracts, and there has been a reimbursement increase to $53.16.

Answer 1

Answer:

It is Profit

Explanation:

Monthly Expense   $ 1,564.29

Maintenance           $ 7,000

Salary                       $ 118,800

Fixed Cost                $ 0

Variable Cost            $ 5,644

Total Costs                  $ 5,644

Reimbursement Cost   $ 89,043