3.docx - PART 1 Dr Jones is interested in expanding his...

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PART 1: Dr. Jones is interested in expanding his practice by adding 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 $1,564.29 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? Why? PART 2:  Reviewing the Budget Dr. Jones’ office has purchased the above equipment. It is 
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  • Fall '06
  • Hadaway
  • Dr. Jones

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