Would further explanation be needed in justifying the addition of this test as addition does not appear to be warranted on its own merits?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are the laboratory manager. The hospital administration wants to penetrate the market and expand the business by performing Parathyroid Surgeries (reimbursement $15,000). They have enticed a prominent surgeon to join the staff He plans on scheduling four surgeries per week - two on Tuesday and two on Thursdays. Every case will need on intact Parathyroid Hormone (PTH) performed STAT during surgery. You currently send this test to your reference laboratory with a minimum 24-hour TAT. None of the analyzers currently in your lab are capable of running this test. The best pricing you obtain is from Siemens Diagnostics for an Immulite 1000. The price of the analyzer is $75,000. The price of the test kit is $800 for 100 tests. The test requires three levels of controls run per 24 hours. The stability of the test kit once opened is eight weeks. Reimbursement for the test is $20. You realize that you will only be able to run on average 32 tests (patient reportable results) before discarding the reagent ($25 per test for reagent alone).

  1. Would further explanation be needed in justifying the addition of this test as addition does not appear to be warranted on its own merits?
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You will require the designing division to set up the hardware, administrator, and buy office to orchestrate the acquirement and establishment. Moreover, you will require an architect watching out on this apparatus consistently in the event that there is any circumstance of breakdown. You should enlist an analyzer as none of the analyzers right now can run the test

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