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Projected Capital Budget, Revenue and Expense Budget

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Start Up and Operational Budgets: Prepare a projected Capital Budget as well as a Revenue and Expense Budget for start-up (the first year of operation). Using the same or altered assumptions, prepare a projected Revenue and Expense Budget for the second year of operation.
Organization X has its own facility where medical waste gets destroyed. The transport company delivers the waste to the facility from all of the affiliated hospitals.

Show that buying the truck will help the organization save some money and make additional revenue.
Please write one paragraph explaining why the organization should buy the truck or stay with the transport company based on the numbers provided.

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Solution Summary

Organization X is currently evaluating a decision to replace an outside transportation service with its own truck. The company currently uses outside transport service to transport medical waste from its various affiliate hospitals to the waste disposal facility owned by the company.

Based on the analysis as shown in appendix 1, we can see that the current total cost of the operation is........

Detailed answer attached along with the calculation.

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Organization X is currently evaluating a decision to replace an outside transportation service with its own ...

Solution provided by:
Sonia Agarwal, CA
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
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