Dr. Jones isinterested in expanding his practice by adding a

Dr. Jones isinterested in expanding his practice by adding a piece of radiology equipment.The basic cost of the equipment would be $79,000 for the first year. Themonthly loan cost for this equipment is $1,564.29 for five years. AdditionallyDr. Jones will have to factor in the cost to hire a radiology tech with apredicted $39,600 annual salary (this includes all taxes and fringe benefits).The office already has a radiology room so there is no fixed costs associatedwith this purchase. You help Dr. Jonesdetermine that the office will do 1100 studies per year with an averagereimbursement of $51.63. The variable cost per study is $3.24.