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VLD [36.1K]
3 years ago
5

You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-y

ear life of the scanner. Assuming no salvage value and an annual increase in replacement cost of 10 percent, what capital charge per procedure should the hospital levy to provide for replacement cost in the second year
Business
1 answer:
nignag [31]3 years ago
5 0

Answer:

The capital charge per procedure that the hospital should levy to provide for replacement cost in the second year is:

= $64.82 per procedure.

Explanation:

a) Data and Calculations:

Cost of CT Scanner = $750,000

Annual increase in replacement cost = 10%

Estimated useful life of the scanner = 5 years

Number of procedures per year over the estimated 5-year life = 7,000

Total number of procedures = 35,000 (7,000 * 5)

Replacement cost in 2 years = $750,000 * FV factor

= $750,000 * 1.21

= $907,500

Amount to charge per procedure = $907,500/14,000

= $64.82

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2 years ago
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1 year ago
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6 0
3 years ago
Read 2 more answers
Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
photoshop1234 [79]

Answer:

Unit product cost= $84

Explanation:

Giving the following information:

Units produced 8,700

Direct materials $13

Direct labor $55

Variable manufacturing overhead $1

Fixed manufacturing overhead $130,500

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

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5 0
3 years ago
Mary spends $5 on food for her cat. This is an example of a: a. household buying goods and services in the factor market. b. hou
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Answer:

household buying goods and services in the product market

Explanation:

The product market is where final goods and services are sold to households and firms.

The factor market is where factors of production are exchanged.

Mary is buying food for her cat. There are no indications that Mary is a business and that the food is a factor of production. Therefore, Mary is an household and she's purchasing from the product market.

I hope my answer helps you

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