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 must 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 are no fixed costs associated with this purchase. you 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.

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.

Step-by-step explanation:

1. Dr. Jones Income per year:

Income = 1,100 * 51.63

Income = US$ 56,793

2. Dr. Jones Costs

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

Total costs = US$ 61,935.48

3. Dr. Jones Profit or Loss

Profit or loss = Income - costs

Profit or loss = 56,793 - 61,935.48 (Costs are higher than income)

Loss = US$ 5,142.48

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step-by-step explanation:

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step-by-step explanation:

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