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  3. 2. olinick corporation is considering a project

2. Olinick Corporation is considering a project that would require an investment of...

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Accounting

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Olinick Corporation is considering a project that would require an investment of $322,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.) Sales Variable expenses Contribution margin Fixed expenses: $284,000 18,000 266,000 Salaries Rents Depreciation 29,000 42,000 37,000 108,000 $158,006 Total fixed expenses Net operating income The scrap value of the project's assets at the end of the project would be $19,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below Budgeted number of patient-visits Budgeted variable overhead costs: 7,700 Supplies (@$6.00 per patient-visit) Laundry (@$9.00 per patient-visit) $ 46,206e 69,300 115,500 Total variable overhead cost Budgeted fixed overhead costs: 54,900 87,000 141,908 $257,406 Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost The total overhead cost at an activity level of 8,400 patient-visits per month should be

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