A new cardiac catheterization lab was constructed. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab was constructed, 5,000 patients were served in the first year and were charged $340, for each procedure. The annual fixed cost for the catheterization lab is $1 million and the variable cost is $129 per procedure. What is the catheterization labs profit? Did this profit meet its desired ROI? Why or Why not?
A new cardiac catheterization lab was constructed. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab ...
Solution Summary
Solution discusses the profit meet its desired ROI
... of new products have failed to meet their sales ... probability of achieving target sales and profits will be ... to achieve its desired target profit of $4,000,000 or ...
... 75% chance that the targets will be met under both ...ROI evaluates the profits compared to the investments ... So, the profit margin generated would be the numerator ...
... of new products have failed to meet their sales ... It appears that the company's profit for the year ... the probability of achieving target sales and profits will be ...
... of new products have failed to meet their sales ... is likely to achieve its desired target profit of $4,000,000 as shown above , its profits are more ...
... ROS is 22.5%, well above the desired 10% and ... Mother's Segment as this segment meets both criteria set ... which computes profit, net profit contribution, marketing ...
... 1) Expected rate of return and units produced to meet this rate. ... $5.00 * 280,000 = $1,400,000. The total profits will be: ... Rate = Profit / Total Revenue. ...
... that the division was not able to meet up with ... This will mean that the profit, after dropping the ... that expresses the relationship between a desired rate or ...
... reliably that the core competency of design meets our three ... draw in a high amount of profits, the larger ... company will go about achieving the desired objectives ...
... of price and cost on operating profits on and ... may PORTATION COULD AFFECT OUR PROFIT- adversely affect ... a result of the ongoing covenants or meet those financial ...
