Roi for an investment center a new cardiac catheterization

Reference no: EM13484345

ROI for an investment center. A new cardiac catheterization lab was constructed at Havea Heart Hospital. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab was constructed, 5,000 patients were served in the first year and were charged $340 for each procedure. The annual fixed cost for the catheterization lab is $1,000,000, and the variable cost is $129 per procedure. What is the catheterization lab's profit? Did this profit meet its desired ROI?

Reference no: EM13484345

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