What is your recommendation to benson hospital

Assignment Help Managerial Accounting
Reference no: EM132974842

Question - On January 2, 2013, Benson Hospital purchased a P100,000 special radiology scanner from Piccard Inc. The scanner had a useful life of 4 yrs and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are P105,000.

Approximately one year later, the hospital is approached by Dyno Technology salesperson Meg

Ryan, who indicated that purchasing the scanner in 2013 from Picard Inc was a mistake. She points out that Dyno has a scanner that will save Benson Hospital P30,000 a year in operating expenses over its three-year useful life. She notes that the new scanner will cost P110,000, and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Ryan agrees to buy the old scanner from Benson Hospital for P40,000.

Requirement -

1) Using incremental analysis, determine if Benson Hospital should buy the new scanner on January 2, 2014.

2) What is your recommendation to Benson Hospital regarding the purchase of the new scanner?

Reference no: EM132974842

Questions Cloud

Calculate the basic and diluted earnings per share : Calculate the basic and diluted earnings per share for x for the year ended 31 may 20x4 in accordance with IAS 33 Earnings per share
What type of abuse does example represent : What type of abuse does your example represent (e.g., physical, psychological, financial, medical, etc.)? How could the abuse have been prevented?
Identify three practices that could be discriminatory : Assume that you plan the programs for recruiting, hiring, training, promotion and retention. Identify three practices that could be discriminatory
Describe internal factors that have defined organization : Describe the internal and external factors that have defined and shaped your organization in terms of its size, organizational structure, and processes
What is your recommendation to benson hospital : Ryan agrees to buy the old scanner from Benson Hospital for P40,000. What is your recommendation to Benson Hospital
Describe organization in terms ofdesign : A new CEO has just taken over your organization,Describe organization in terms of its design (centralized, decentralized, location, and so on) and functionality
What is the duration of instrument B : Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. What is the duration of instrument B
Record amortization expense : On January 1, 2022, management determines that the patent has a remaining useful life of 3 years. Record amortization expense for 2022
Discuss the appropriateness of using same leadership style : Discuss the appropriateness of using the same leadership style across all EU countries. Include in your discussion the research results

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd