Dr Jones is deciding whether to open a surgery store. he estimates that annual fixed overhead costs for the center will be 120,000$.
View the step-by-step solution to:

Question

Dr Jones is deciding whether to open a surgery store. he estimates that annual fixed overhead costs for the center

will be 120,000$. he also estimates that he will have $ 75,000 is dixed staffing costs. Dr. Jones' accountant has told him that his variable costs will be 250$ per surgical case in staffing costs plus an additional 75$ per case in medical supplies. in studying the demand for the procuedures, Dr. Jones feels that he will perform approximately 100 surgeries per years. what must he collect per surgical case per procedure to break even?

In order to make 100,00 profit, what must Dr Jones collect per case

Assuming a volume of 200 surgeries, what must dr.jones collect per case to break even?



Q2: Dr Fraber an orthopedic physician purchased a new MRI machine for 900,000. He has estimated that his only additional cost will be staff related of 75,000$ per year, plus supply costs of 50$ per exam. If he collects an average of $1,000 per study, how many studies will he need to do to cover his staffing and supply costs?

B. he needs to earn an additional $100,000 per year to cover the cost of teh machine. how many procedures will he need to perform?

C. if he knows that his capacity on the machine will only be 500 procedures a year, how much would he have to collect per exam to cover the dfixed cost plus teh $250,000 profit. Hint you are now given the volume and need to solve for price. it will be higher than the current $1,000 per study

Top Answer

Q1 Collect per surgery $1,950 Required Collect per surgery... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question