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E:6,7; P:21 Question 2 (of 3) room care to outpatient clinics. The inefficient X

ID: 2399737 • Letter: E

Question

E:6,7; P:21 Question 2 (of 3) room care to outpatient clinics. The inefficient X-ray machine with a state-of-the-art digital X-ray machine. The new machine would provide higher quality X-rays in less time and at a lower cost per X-ray. It would also require less power and use a color laser printer to produce easily readable X-ray images. Instead of investing the funds in the new X-ray machine, the Laboratory Department is lobbying the hospital's management to buy a new DNA analyzer. Required: Classify each item as a differential cost, an opportunity cost, or a sunk cost in the decision to X-ray machine with a new machine. If none of the categories apply for a particular item, select replace the old Cost Ex. Cost of X-ray film used in the old machineDiffe 1. Cost of the old X-ray machine 2. The salary of the head of the Radiology Department 3. The salary of the head of the Pediatrics Department 4. Cost of the new color laser printer 5. Rent on the space occupied by Radiology 6. The cost of maintaining th 7. Benefits from a new DNA analyzer 8. Cost of electricity to run the X-ray machines Differential cost None Opportunity cost Sunk cost rences eBook&Resources; Worksheet 8

Explanation / Answer

Item Cost 1 Cost of the old X-ray machine Sunk cost 2 The salary of the head of the Radiology Department None 3 The salary of the head of the Pediatrics Department None 4 Cost of the new color laser printer Differential cost 5 Rent on the space occupied by Radiology None 6 The cost of maintaining the old machine Differential cost 7 Benefits from a new DNA analyzer Opportunity cost 8 Cost of electricty to run the X-ray machines Differential cost