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Northeast Hospital’s Radiology Department is considering 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-rays in less time and at a lower 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 investing the funds in the new X-ray machine, the Laboratory Department is lobbying the hospital’s management to buy a new DNA analyzer.
Required:
Classify each item as a differential cost, a sunk cost, or an opportunity cost in the decision to replace the old X-ray machine with a new machine. If none of the categories apply for a particular item, select "None".

Sagot :

The cost of the old X-ray machine is an example of sunk cost.

2. The salary of the head of the Radiology Department is not an example of any of the costs.

3. The salary of the head of the Laboratory Department  is not an example of any of the costs.

4. The cost of the new color laser printer is an example of differential cost.

5. Rent on the space occupied by Radiology is not an example of any of the costs.

6. The cost of maintaining the old machine is an example of differential cost.

7. Benefits from a new DNA analyzer is an example of opportunity cost. 8. Cost of electricity to run the X-ray machines is an example of differential cost.

What is sunk cost, differential cost and opportunity cost?

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives.

Sunk cost is a cost that has already been incurred and cannot be recovered. Sunk cost should not be considered when making future economic decisions.

Differential cost is the cost of two different alternatives.

Please find attached the complete question. To learn more about opportunity cost, please check: https://brainly.com/question/26315727

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