Question
Hi,, May you assist/explain the following- 1. You are a radiologist trying to decide whether or not to buy an open MRI machine. The machine
Hi,,
May you assist/explain the following-
1. You are a radiologist trying to decide whether or not to buy an open MRI
machine. The machine costs $2.6 million. You believe you can charge a premium for
an open MRI and can realistically get $1,500 per scan. The cost of labor for your
tech is about $150 per scan, as well as the value of your own time, which you put at
$200.
a. What is the break-even quantity of scans to pay for the MRI machine? --- I did this but not sure: 2.6 mil/1500-350=2,261
b. A few months after you purchase the machine, you realize that the revenue model
is more complex. Although your costs estimates were correct, your revenue comes
at three different levels: you get $1,500 per scan for privately insured patients;
$1,100 for Medicare patients; and $650 for Medicaid patients. The breakdown of
your patient group is about 55 percent privately insured; 30 percent Medicare; and
15 percent Medicaid. Now, what is the break even quantity?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started