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Question #1 Assume a firm is considering the purchase of a new imagining machine. The details for the machine are as follows: cost: $2,500,000; delivery:

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Question #1 Assume a firm is considering the purchase of a new imagining machine. The details for the machine are as follows: cost: $2,500,000; delivery: $61,000; sales tax: 2.5%; maintenance costs for the machine are $70,000 in year 1 and increase at a rate of 7% annually operating labor: 2 staff members are needed ($106,000 per staff member) to operate the machine for every 2,000 scans provided per year the machine is expected to be useable for 7 years; after 7 years, the machine has a scrap value of $16,000; each scan completed results in $34 in variable costs Please calculate the annual depreciation amount for this machine. Question #2 (Chapter 5) Assume that the firm does not have any semi-fixed costs and that labor costs and maintenance are constant regardless of output. Further assume, that by contract the firm must pay for the labor and maintenance regardless of whether it completes one scan or 4,000 scans Please calculate the following the breakeven volume for the following prices: $100 $175 $200 Question #3 (Chapter 5) Assume that the firm does not have any semi-fixed costs and that labor costs and maintenance are constant regardless of output. Further assume, that by contract the firm must pay for the labor and maintenance regardless of whether it completes one scan or 4,000 scans volunes . 2,005 2,401 . 5,002

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