Answer:
<u>Dr. Jones' projected income is US$ 56.793, projected costs are US$ 61,935.48 and projected loss is US$ 5,142.48 for the 1st year of the radiology service.</u>
Step-by-step explanation:
1. Dr. Jones Income per year:
Income = 1,100 * 51.63
<u>Income = US$ 56,793</u>
<u>2. Dr. Jones Costs</u>
Equipment = US$ 1,564.29 loan cost monthly
Radiology tech salary = US$ 39,600 (including taxes and fringe benefits)
Variable cost = US$ 3.24 * 1,100
Equipment = 1,564.29 * 12 = US$ 18,771.48
Radiology tech salary = US$ 39,600
Variable cost = US$ 3,564
Total costs = Equipment loan cost + Radiology tech salary + Variable cost
Total costs = 18,771.48 + 39,600 + 3,564
<u>Total costs = US$ 61,935.48</u>
<u>3. Dr. Jones Profit or Loss</u>
Profit or loss = Income - costs
Profit or loss = 56,793 - 61,935.48 (Costs are higher than income)
<u>Loss = US$ 5,142.48</u>
