$9-40$ CVP Analysis General Hospital's Cardiac Diagnostic Screening $($CDSC$)$ is contemplating purchasing a blood gas analysis machine at a cost of $$960,000.$ Usefull life for this machine is $10$ years. The screening center currently serves $3,000$ patients per year, $40$ percent of whom need blood gases analysis data as part of their diagnostic tests. The blood samples are presently sent to a private laboratory that charges $$200$ per sample. In$-$house variable cost is estimated to be $$125$ per sample if CDSC purchased the analysis machine.

$1.$Determine the difference point between purchasing rhe machine or using the private laboratory.

$2.$ Use the Goal Seek function in Excel to determine the indifference point calculated in requirement $1.$

$3.$Determine how many additional patients would be needed so that CDSC would be indifferent between

purchasing the analysis machine and the $$200$ lab charge.

$4.$Assuming the current service level of $3,000$ patients per year with $40$ percent requiring blood gases

testing, how much would the private laboratory have to charge per sample to make CDSC indifferent

between purchasing the analysis machine and using the private laboratory's services?

$5.$What other considerations are relevant to this decision?