What is the implied variable cost rate for scanner

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Reference no: EM13895664

Seattle Grace Hospital plans to invest in a new piece of CT imaging equipment. The hospital estimates that it can bill $1,500 per scan. Preliminary market assessments indicate that demand will be fewer than 5,000 scans per year. The hospital is considering a scanner (scanner A) that will result in total fixed costs of $1 million per year and would yield a profit of $500,000 if the hospital produced and billed for 5,000 scans. What is the implied variable cost rate (variable cost per scan) for scanner A?

a. $1,500b. $300c. $1,200d. $200e. $100

Reference no: EM13895664

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