Zubair is a professional researcher, he has been commissioned to conduct medical research into an allegation that mobile phones are bad for public health. Zubair estimates that the research will require 200 hours of this time, which he charges at $100 per hour. he also requires the services of Faiz, his research assistant, for 100 hours at $60 per hour. overheads are recovered at a rate of $40 per labor hour. Required to prepare a statement showing the amount Zubair will charge for carrying out this research.
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Zubair is a professional researcher, he has been commissioned to conduct medical research into an allegation that mobile phones are bad for public health. Zubair estimates that the research will require 200 hours of this time, which he charges at $100 per hour. he also requires the services of Faiz, his research assistant, for 100 hours at $60 per hour.
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- Laurie Vaden is a physician with her own practice. She has developed contracts with several large employers to perform routine exams, fitness-for-duty exams and initial screening of on-the-job injuries. She provides 100 exams per month, charging $100 per exam. Under this contract, she estimates her avoidable fixed costs attributable to the exams is $1,000 per month, and she pays a lab an average of $15 per exam. She has decided she needs to increase profit, so she is considering raising her fee to $125, even though there may be a 10% loss in the number of exams she does per month. Determine the current and predicted: revenues, variable costs, total contribution margin and product margin. What do you recommend she do? Current Revenue Current Variable costs Current total contribution margin Current product margin Predicted Revenue Predicted variable costs Predicted total contribution margin Predicted product margin Recommendation? Enter RAISE or NO CHANGE as your answer.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. 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.
- 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…Edward Foster is a building contractor. He and his customer have agreed that he will submit a bill to them when he is 25 percent complete, 50 percent complete, 75 percent complete, and 100 percent complete. For example, he has a $300,000 room addition. When he has completed 25 percent, he will bill his customer $25,000. The problem occurs when he is 40 percent complete and has incurred expenses but cannot bill his customer.Pete manages the nursing department of a local long-term rehabilitation center. He has positions for 200 nurses working under him. However, due to 35% annual turnover, he has a difficult time staying fully staffed. Caroline, the CEO of the facility pointed out to Pete that he needs to maintain full staffing in order for the facility to serve the maximum number of patients. She directs him to prepare a plan to lower the turnover rate to 20%. After doing a thorough review, Pete has determined that it costs him $2,000 to recruit and $3,000 to on-board a new nurse. If he is willing to spend all the money he saves by getting the turnover rate to 20%, how much would be the maximum Pete should spend on his new plan? Please show work in excel. Thanks! A. $350,000 B. $200,000 C. $175,000 D. $150,000
- Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $1 S per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?John Milton and two of his colleagues are considering opening a law office in New York City that would make inexpensive legal services available to those who could not otherwise afford these services. The intent is to provide easy access for their clients by having the office open 360 days per year, 16 hours each day from 7:00 a.m. to 11:00 p.m. The office would be staffed by a lawyer, paralegal, legal secretary, and clerk-receptionist for each of the two 8-hour shifts. In order to determine the feasibility of the project, John hired a marketing consultant to assist with market projections. The results of this study show that if the firm spends $500,000 on advertising the first year, the number of new clients expected each day would have the following probability distribution: Number of New Clients per Day Probability 20 0.10 30 0.30 55 0.40 85 0.20 John and his associates believe these numbers are reasonable and are prepared to spend the $500,000 on advertising. Other pertinent…
- On March 1, Marquette is approached by the developer of a large subdivision who wants to install an invisible fence in the yard of 1,200 homes he is constructing. The developer will contract with Marquette for the 1,200 fences on the condition that they are delivered within 30 days (March 31). This is not good timing for Marquette since they have recently signed a contract with Home Warehouse, a national home improvement chain and have been working at 100% capacity for several months. If Marquette accepts the builder’s order, it will lose 1,200 units that would normally be sold to one of its existing customers. When they tell the developer that they do not believe they can fill his order, he offers to reimburse the company for his “share” of the fixed manufacturing costs and will pay a $5,000 “bonus” on delivery. Since the sale to the developer will not incur any variable marketing costs, Marquette reconsiders accepting the developer’s order. What impact will accepting this order have…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.Monica Lee, Administrative Director of Digital Imaging Center, has been asked by the practice members to see if it is feasible to add a technologist aide to support the practice's mammography service. The center currently has two digital mammography units, two technologists and one technologist aide. She has complied the following information: Reimbursement per mammogram: $140 Equipment lease per month per machine: $12,000 Equipment maintenance cost per month per machine: $9,000 Technologist cost per mammogram: $35 Technologist aide cost per mammogram: $20 Variable cost per mammogram: 13 a: What is the patient volume Digital Imaging needs per month to cover fixed and variable costs and to make a $20,000 profit to cover other practice costs[x]?
