A hospital germ-fighting and floor cleaning robot, named Maurice, costs $104,000. Patients are billed $1 per day for Maurice’s use and upkeep. A certain 300-bed hospital is considering purchasing this robot. What is the simple payback period for Maurice? What assumptions did you make?
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Solution:- 1)Calculation of the total revenue that Worley would receive from University and Memorial…
Q: The hospital where you are employed is continuing with their analysis with the goal of opening a…
A: Revenues and expenses related to the operation of a hotel have been provided. Based on the data, we…
Q: Fulton National Hospital is reviewing ways of cutting the costs for stocking medical supplies. Two…
A: From the above Calculation it is visible that the Total cost under system Stockless Supply is…
Q: In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner…
A: Total saving in operating costs = Annual operating costs x no. of years = $25000 x 4 years =…
Q: Dr. Magneto is evaluating whether to open a private MRI clinic in leased office space in a local…
A: After tax salvage value of machine After tax salvage value of machine is calculated as shown below.…
Q: ABC Medical has invested RM2 million in a Health Diagnostic Support system. To maintain the system,…
A: The return earned by the company on the initial investment expressed in percentage is known as…
Q: Glenn Medical Center has seen a growth in patient volume since its primary competitor decided to…
A: Here, Cost of unit is $4,000,000 Salvage Value is $400,000 Life of Unit is 6 years Revenue in first…
Q: Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its…
A: The question is based on the concept of Business Accounting.
Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…
A: Present value factor calculation = 1/(1+r) n r is interest rate n is time Or year
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: You are the administrator of a clinic. Assume you perform a TDABC analysis on your institutions 3000…
A:
Q: The Anacome County Health Department is considering using 300 square feet of excess office space to…
A: Calculation of total contribution margin and total product margin: Answer: Total contribution margin…
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Solution 1: Computation of Revenue - Worley Company Particulars Universal Memorial Cost of…
Q: During 2020, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a…
A: The profit before tax represents the amount that has been earned by the company on which the a has…
Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…
A: We first will calculate the present value of uniform payment for 8 years by applying the formula,…
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Markup = Purchased medical supplies cost * Markup rate Total Revenue = Purchased medical supplies…
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Answer 1: The total revenue that Worley would receive each from University and Memorial: Total…
Q: You are considering starting a walk-in clinic. Your financial projections for the first year of…
A: The project profit and loss statement presents the profit and loss the firm can expects from the…
Q: As a medical administrator at the local hospital, you made a total purchase of $4447.85. Currently,…
A: Given: Total purchases = $4447.85 Saline solutions =40 Catheters = 25 Syringe = 150 Cost per saline…
Q: Dr. Gulakowicz is an orthodontist. She estimates that add-ing two new chairs will increase fixed…
A: Break even is the point where cost is equal to revenue. It is the condition of no profit, no loss.
Q: San Juan Health Department's dental clinic projects the following costs and rates for the year 20XX.…
A: Break-even point is the point at which the fixed cost is equals to the contribution. The…
Q: Lutheran Regional Hospital uses a planning process to define a new radiology service line. The…
A: Break even point = Fixed costs / Contribution margin per unit Contribution margin = Sales - variable…
Q: A new cardiac catheterization lab was constructed at Havea Heart Hospital. The investment for the…
A: a. lab profit = (Sales in units*(Price - Variable cost)) - Fixed cost Lab profit = (5,000*($340 -…
Q: Dr. Jones is evaluating whether to open a private MRI clinic in leased office space in a local strip…
A: Operating cash flow is determined after making adjustments for non-cash related incomes and expenses…
Q: A not-for-profit hospital realizes a 3 percent return on its $200,000 investment in its home health…
A: Non-for-profit organizations are those organizations that do not make a profit for their members. A…
Q: An undergraduate engineering student and her husband operate a pet-sitting service to help make ends…
A: Effective annual rate of return on an investment is the total return that an investor earns from the…
Q: A new company, Ryan Inc., has hired you to set-up the Human Resources Department. As part of its…
A: 1. Total budget=$100000 Fixed cost=$70000 Variable cost=$30000 Cost per counsellor=$240 No of…
Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…
A: NPV is the method under Capital budgeting which help in taking the decision of project feasibility…
Q: Zubair is a professional researcher, he has been commissioned to conduct medical research into an…
A: Total labor hours = 200 hours + 100 hours = 300 hours Overhead recovered = Total labor hours x $40…
Q: n 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner…
A: Straight line basis is a method of computing the depreciation of an asset or an equipment which…
Q: An IE works in the automation department of a surgical equipment manufacturing company that produces…
A: Project Decision: The management plans the spending on fixed assets using the capital budget as a…
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Activity Cost Pool: An activity cost pool is a total of the multitude of expenses related to playing…
Q: Assume that a certain nursing home has two categories of payers. Medicaid pays las $60.00 per day…
A: The question is based on the concept of cost accounting to evaluate the required price of a product…
Q: The hospital is considering the purchase of imaging equipment worth $25,000 to improve its visual…
A: GIVEN, INITIAL INVESTMENT = $25,000 ANNUAL SAVING = $7000 LIFE = 5 SALVAGE VALUE = $5000 R=8%
Q: Auto Shoppe is considering the purchase of a new engine computer code reader for $65,000. Auto…
A: Break-even point refers to the level of sales where there is no Profit no loss situation ie…
Q: Lutheran Regional Hospital uses a planning process to define a new radiology service line. The…
A:
Q: Below are the projected revenues and expenses for a new clinical nurse specialist program being…
A: Annual surplus= Annual revenue- Annual cost Year Annual revenue Annual cost Annual suplus 0…
Q: Alva Community Hospital has five laboratory technicians who are responsible for doing a seriesof…
A: The amount of product produced determines variable costs. Labor, commissions, and raw materials are…
Q: A hospital wants to buy a new MRI machine for $45,000. The annual revenue from the machine is…
A: In this method of comparison, the cash flows of each alternative will be reduced to time zero by…
Q: In 2018, the Port of Spain General Hospital purchases a scanner at a cost of $ 100,000. The scanner…
A: PLEASE GIVE A LIKE, your response matters (a) Purchasing cost of scanner $100,000…
Q: A capitated managed care agreement with the city will bring in 400.00/month for 20 city employees,…
A: Capitation payments are fixed payment amounts between insurers and medical providers as part of the…
A hospital germ-fighting and floor cleaning robot, named Maurice, costs $104,000. Patients are billed $1 per day for Maurice’s use and upkeep. A certain 300-bed hospital is considering purchasing this robot. What is the simple payback period for Maurice? What assumptions did you make?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Dr. Whitley Avard, a plastic surgeon, had just returned from a conference in which she learned of a new surgical procedure for removing wrinkles around eyes, reducing the time to perform the normal procedure by 50%. Given her patient-load pressures, Dr. Avard is excited to try out the new technique. By decreasing the time spent on eye treatments or procedures, she can increase her total revenues by performing more services within a work period. In order to implement the new procedure, special equipment costing $74,000 is needed. The equipment has an expected life of 4 years, with a salvage value of $6,000. Dr. Avard estimates that her cash revenues will increase by the following amounts: Year Revenue Increases 1 $19,800 2 27,000 3 32,400 4 32,400 She also expects additional cash expenses amounting to $3,000 per year. The cost of capital is 12%. Assume that there are no income taxes. Required: 1. Compute the payback period for the new equipment. Round your…Dr. Whitley Avard, a plastic surgeon, had just returned from a conference in which she learnedof a new surgical procedure for removing wrinkles around eyes, reducing the time to performthe normal procedure by 50%. Given her patient-load pressures, Dr. Avard is excited to try outthe new technique. By decreasing the time spent on eye treatments or procedures, she can increase her total revenues by performing more services within a work period. In order to implement the new procedure, special equipment costing $74,000 is needed. The equipment has anexpected life of 4 years, with a salvage value of $6,000. Dr. Avard estimates that her cash revenueswill increase by the following amounts: She also expects additional cash expenses amounting to $3,000 per year. The cost of capital is12%. Assume that there are no income taxes.Required:1. Compute the payback period for the new equipment.2. Compute the ARR. Round the percentage to two decimal places.3. CONCEPTUAL CONNECTION Compute the NPV and…Alva Community Hospital has five laboratory technicians who are responsible for doing a seriesof standard blood tests. Each technician is paid a salary of $30,000. The lab facility representsa recent addition to the hospital and cost $300,000. It is expected to last 20 years. Equipmentused for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries,facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and othersupplies. This $200,000 is enough for 200,000 blood tests.Required:Assuming that the driver (measure of output) for each type of cost is the number of blood testsrun, classify the costs by completing the following table. Put an X in the appropriate box forvariable cost, discretionary fixed cost, or committed fixed cost.
- Dr. Claudia Gomez, a plastic surgeon, had just returned from a conference in which she learned of a new surgical procedure for removing wrinkles around eyes, reducing the time to perform the normal procedure by 50%. Given her patient-load pressures, Dr. Gomez is excited to try out the new technique. By decreasing the time spent on eye treatments or procedures, she can increase her total revenues by performing more services within a work period. In order to implement the new procedure, special equipment costing $88,800 is needed. The equipment has an expected life of 4 years, with a salvage value of $7,200. Dr. Gomez estimates that her cash revenues will increase by the following amounts: Year Revenue Increases 1. $23,760 2. $32,400 3. 38,880 4. 38,880 Conceptual Connection: Compute the NPV for the project, using 14% as the IRR.The hospital where you are employed is continuing with their analysis with the goal of opening a walk-in clinic. After conducting additional research, the financial projections for the first year of operations are as follows: Revenues (from 10,000 visits): $400,000 Wages and benefits: $220,000 Rent: $5,000 Depreciation: $30,000 Utilities: $2,500 Medical supplies: $50,000 Administrative supplies: $10,000 Assume that all costs are fixed except supply costs, which are variable. Assume that the clinic will be required to pay taxes at a 30% tax rate. Respond to the following questions. Be sure to show your work for all calculations. Prepare the clinic’s projected Profit and Loss (P&L) Statement. (8 points) What number of visits is required to break even? (3 points) What number of visits is required to provide you with an after-tax profit of $100,000? (4 points)Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic in Cedar Park. This state-of-the-art system is expected to be used for 5 years and then sold for $125,000. Humana uses a return requirement of 15% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. If the AOC is expected to be $80,000 per year, what is the total revenue required to provide for recovery of capital, the 15% return, and the annual expenses? -258917 -343654 -285197 -334654
- Fulton National Hospital is reviewing ways of cutting the costs for stocking medical supplies. Two new stockless systems are being considered to lower the hospital's holding and handling costs. The hospital's industrial engineer has compiled the relevant financial data for each system, as follows, where dollar values are in millions: The system life of eight years represents the contract period with the medicalsuppliers. If the hospital's MARR is 10%, which system is more economical?What is the value of the cost pool and allocation rate if patient service is used as cost driver and hours of housekeeping used as a cost driver? $100,000 in direct costs, $5 million in patient service revenues, & 5,000 hrs of housekeepingSan Juan Health Department's dental clinic projects the following costs and rates for the year 20XX.Total fixed costs: $225,000Variable costs: $60 per patientCharges: $250 per patient Using the information above, determine the break-even point in patients? Using the information above, determine the break-even point in dollars? If the clinic decided it would like to make a profit of $8,000, what is the new break-even point in patients? If the clinic decided it would like to make a profit of $8,000 at 1,226 patients, what is the new break-even point in dollars?
- Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $30,000 to buy from manufacturers): 4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the…Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 500,000 5,000 deliveries Manual order processing (Number of manual orders) 248,000…Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 500,000 5,000 deliveries Manual order processing (Number of manual orders) 248,000…