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Exercise 2

Exercise 2

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Published by: nur shahibah nusaibah on Aug 11, 2009
Copyright:Attribution Non-commercial


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EXERCISE 2-7 DIFFERENTAIL, OPPORTUNITY ,AND SUNK  Northwest Hospital is a full-service hospital that provides everything from major surgeryand emergency room care to outpatient clinics.The hospital’s Radiology Department isconsidering replacing an old inefficient X-ray machine with a state-of-the-art- digital X-ray machine.The new machine would provide higher quality X-rayin less time and at alower cost per X-ray.It would also require less power and would use a color laser printer to produce easily readable X-ray images.Instead of inversting the funds in the new X-raymachine,the Laboratory Department is lobbying the Hospital’s management to buy a newDNA analyzer.
For each of the items below,indicate by placing an X in the appropriate column whether itshould be considered a differential cost,an opportuniy cost, or a sunk cost in the dicisionto replace the old X-ray machine with a new machine.If none of the categories apply for a particular item, leave all column blank.ITEMDIFFERENTAILITEMOPPORTUNITYCOSTSUNK COST
:Cost of X-rayfilm used in the oldmachine.1)Cost of the old X-ray machine2)The salary of thehead of theRadiologyDepartment3)The salary of thehead of thePediatricsDepartment.4)Cost of the newcolor laser printer 5)Rent on the spaceoccupied byRadiology.6)The cost of maintaining the oldmachine.XXXXXXX

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