Task: MRI at Memorial Hospital has the following projected operating data for next year.
Fixed costs Variable costs Total costs
Equipment lease $350,000 $350,000
Supplies $97,000 $97,000
Labor $145,000 $182,000 $327,000
Hospital Admin $63,000 $63,000
Occupancy $48,000 $48,000
Total Projected cost $606,000 $279,000 $885,000
Number of images 33,600
Number of hours 2,800
Typical elderly patients requires one hour of MR time to produce the 10 MRI images, other patients only require about 45 minutes to produce 10 MRI images
Q1. Calculate projected cost per MRI image
Q2. Calculate projected cost per hour of MRI time
Q3. If typical elderly patients requires one hour of MR time to produce the 10 MRI images, calculate MRI costs based on cost per image basis
Q4. If typical elderly patients requires one hour of MR time to produce the 10 MRI images, calculate MRI costs based on cost per hour of MRI time
Q5. Should the hospital calculate the cost based on per image or per MRI hour? Explain why?