This assignment has two parts:
Boston General Hospital is considering investing $98,000 in a new dietary equipment to replace its present equipment, which is
completely depreciated and outdated. An alternative to this investment is a long-term contract with a local firm to perform the hospital’s
dietary service. It is expected that the hospital would save $20,000 per year in operating costs if the dietary service was performed
internally, vs. contracting it out. Both the expected life and the depreciable life of the projected equipment are 6 years. Salvage value of
the present equipment is expected to be zero. Assuming that Boston General Hospital can borrow and invest money at 8%,
calculate the payback period. Please show your work for this calculation and label it properly to receive credit.
Please complete question 1-5 below. Please show all of your work to receive credit and label it properly.
Jack’s respiratory care agency is considering a new product with a fixed cost of $3,000, a charge per unit of $150, and a variable cost of $100.
1. Calculate the break-even point in quantity.
2. Calculate the contribution margin in dollars.
3. Calculate the contribution margin as a percent.
4. Calculate the breakeven point in dollars.
5. The breakeven point occurs where:
|A.||total variable costs and total revenue intersect|
|B.||total revenue outpaces total avoidable fixed costs|
|C.||total costs and total revenue intersect|
|D.||total fixed costs and total revenue intersect|
|E.||total profit margin and total costs intersect|