Art #1 dr. jones is interested in expanding his practice

art #1
Dr. Jones is
interested in expanding his practice by
a piece of radiology equipment.
The basic
cost of the equipment would be $79,000 for the first year.
The monthly loan cost for this equipment
is $1,5
64.29 for five years.
Additionally Dr. Jones
will have to
factor in the cost to
hire a radiology tech
with a predicted
$39,600 annual
(this includes all taxes and fringe benefits).
The office already
has a radiology room so there is no fixed costs
associated with this purchase.
help Dr. Jones
determine that
the office will
do 1100 studies per year with an average
reimbursement of $51.63.
The variable cost per study is $3.24.
Using the standard pro forma sheet, is this a good purchase?
Part #2

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