Answer Happy

Sharp Hospital is deciding between which lab analyzer to buy for the chemistry department in the centralized core laboratory.. The vendors have provided numerous equipment options with varying up front capital costs. The larger, more powerful, analyzers will have higher fixed costs but require less manual labor (variable costs) as the volume of patient samples is increased. See the proposals noted below. If Sharp plans to have a volume of 11,000 patient samples processed in the laboratory, which equipment should they purchase (if any)? Product No Equipment Equipment A Equipment B Equipment C Total Fixed Cost $ $ $ $ Variable Cost Per Unit 0 $ 150,000 $ 300,000 $ 550,000 $ 200 O Equipment A O Not enough info provided to answer this question 75 50 25 O Equipment C O Do not buy new equipment, continue using manual labor O Equipment B