The MedView brochure said, \"Only 45 scans per month to cover the monthly equipm

Question

The MedView brochure said, "Only 45 scans per month to cover the monthly equipment rental of $18000." *The footnote at the bottom of the brochure read: *"Assumes a reimbursable fee of $475 per scan."
The MedView brochure refers to a new radiology imaging system that MedView rents for $18000 per month. A "scan" refers to one imaging session that is billed at $475 per scan. Each scan involves giving the patient a chemical injection and requires exposing and developing an X-ray negative.

a. What variable cost per scan is MedView assuming in calculating the 45-scans-per-month amount?
b. Is the MedView brochure really telling the whole financial picturing? What is it omitting?

Explanation / Answer

a. For calculating the 45 scan per month for Breakeven, MedView is assuming a per scan variable cost of $475. b. It is omitting that $18000 pm is a fixed cost and is reqd to be paid respective of no of scans done in a month.

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