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SKF Primary Care Clinic is deciding whether to purchase an MRI scanner. From a f

ID: 2622758 • Letter: S

Question

SKF Primary Care Clinic is deciding whether to purchase an MRI scanner. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know which of the following information?

Hint: Breakeven analysis

A. unavoidable fixed cost, volume, variable cost and indirect costs

B. variable costs, voolume, avoidable fixed cost and total revenue

C. total unit cost, indirect costs, profit and volume

D. revenue per unit, indirect costs, volume and total revenue

E. avoidable fixed costs, revenue per unit, volume and conribution margin

Explanation / Answer

E. avoidable fixed costs, revenue per unit, volume and conribution margin