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Question 7 Dr Haziq is a radiologist at Merdeka Medical Centre (MMC), and he has estimated the following costs for his Radiology Department for next

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Question 7 Dr Haziq is a radiologist at Merdeka Medical Centre (MMC), and he has estimated the following costs for his Radiology Department for next year: RM Material per film 30 Radiologist and technician's salaries 530,000 Office staff salaries 20,000 Office supplies 80,000 Depreciation of equipment 60,000 Rental 30,000 This budget is based on the estimate of 25,000 films being processed next year using the current X-ray machines, which will be operating at their maximum capacity. The average fee charged to clients for processing a film is RM120. Dr Haziq is considering the purchase of an additional X-ray machine, which will cost RM750,000 and is expected to last 5 years. This purchase would increase the capacity of the department by 50,000 films per year. As this machine can process more intricate films, the average fee for each film is expected to be RM170. An additional technician would need to be hired to operate the machine at a cost of RM5,000 per month and the cost of office supplies would increase by RM90,000 per year. Materials for this machine will be RM44 per film. Required: (a) Calculate the breakeven point and budgeted profit per year if the new machine is not purchased. (b) Calculate the breakeven and budgeted profit per year if the new machine is purchased

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