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

art #1
Dr. Jones is
interested in expanding his practice by
add
ing
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
salary
(this includes all taxes and fringe benefits).
The office already
has a radiology room so there is no fixed costs
associated with this purchase.
You
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?
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