Economics 1. Redo the analysis assuming that per unit supplies cost; billing and collection cost; general administration cost; and transportation, setup, and breakdown cost are higher than the base case values by 10 percent. 2. Redo the base case analysis assuming a useful life of 7 years. 3. What subjective factors would influence the decision as to which alternative to choose?.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
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Economics
1. Redo the analysis assuming that per unit
supplies cost; billing and collection cost;
general administration cost; and
transportation, setup, and breakdown cost
are higher than the base case values by 10
percent. 2. Redo the base case analysis
assuming a useful life of 7 years. 3. What
subjective factors would influence the
decision as to which alternative to choose?.
C
E
G
20
21
22 INPUT DATA
KEY OUTPUT:
23
24 Alternatives I and II Cost Detail
Per Procedure Operating Cost
25
Unit Cost
$0 20
$0 20
Alt. I
Alt. I
$80.15
$98.15
26
Volume
Unit
27 Appointment scheduling
28 Patient check-in
29 Ultrasound testing
minutes
minutes
Total Costs Including Capital and
Maintenance Costs:
$0.40
$3.00
$9.00
$0.20
$0.40
$40.00
30
Technician time
30
minutes
Physician time
Supplies
33 Patient check-out
34 Film processing
35 Film reading
36 Billing and collection
37 General administration
31
1.5
minutes
32
procedure
minutes
Total Lifetime:
10
Alt.I $1,254,300
Alt. I $1,327,800
minutes
1
procedure
procedure
procedure
$6.80
$1.25
1
Total Annual.
38
39 Alternative |I Only Cost Detail:
Alt. I
$250,860
40
Alt.I
$265,560
$1.00
41 Transportation, set-up,
42
18
minutes
and breakdown
Total Per Procedure:
43
44 Other Data:
Alt. I
$104.53
45
Alt.I
$110.65
46 Expected annual volume
47 Capital cost per machine
48 Capital cost discount
49 Cost of van
50 Annual van maintenance
2,400
$100,000
5.0%
$40,000
$1,000
51 Annual machine maintenance:
One unit
Three units ($ per unit)
54 Expected machine/van life
52
$1,000
$500
53
55
Transcribed Image Text:Economics 1. Redo the analysis assuming that per unit supplies cost; billing and collection cost; general administration cost; and transportation, setup, and breakdown cost are higher than the base case values by 10 percent. 2. Redo the base case analysis assuming a useful life of 7 years. 3. What subjective factors would influence the decision as to which alternative to choose?. C E G 20 21 22 INPUT DATA KEY OUTPUT: 23 24 Alternatives I and II Cost Detail Per Procedure Operating Cost 25 Unit Cost $0 20 $0 20 Alt. I Alt. I $80.15 $98.15 26 Volume Unit 27 Appointment scheduling 28 Patient check-in 29 Ultrasound testing minutes minutes Total Costs Including Capital and Maintenance Costs: $0.40 $3.00 $9.00 $0.20 $0.40 $40.00 30 Technician time 30 minutes Physician time Supplies 33 Patient check-out 34 Film processing 35 Film reading 36 Billing and collection 37 General administration 31 1.5 minutes 32 procedure minutes Total Lifetime: 10 Alt.I $1,254,300 Alt. I $1,327,800 minutes 1 procedure procedure procedure $6.80 $1.25 1 Total Annual. 38 39 Alternative |I Only Cost Detail: Alt. I $250,860 40 Alt.I $265,560 $1.00 41 Transportation, set-up, 42 18 minutes and breakdown Total Per Procedure: 43 44 Other Data: Alt. I $104.53 45 Alt.I $110.65 46 Expected annual volume 47 Capital cost per machine 48 Capital cost discount 49 Cost of van 50 Annual van maintenance 2,400 $100,000 5.0% $40,000 $1,000 51 Annual machine maintenance: One unit Three units ($ per unit) 54 Expected machine/van life 52 $1,000 $500 53 55
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