Question

Given: Treatment E: Cost = $5,000, benefit = survival rate of 60% Treatment F: Cost = $7,000, ben...

Given:

Treatment E: Cost = $5,000, benefit = survival rate of 60%

Treatment F: Cost = $7,000, benefit = survival rate of 50%

Treatment G: Cost = $4,000, benefit = survival rate of 40%

Treatment H: Cost =$5,000, benefit = survival rate of 30%

Treatment K: Cost =$3,000, benefit = survival rate of 55%

Treatment J: Cost = $6,000, benefit = survival rate of 68%

1.

Which treatment does J obviously dominate?

G and H

K

E

F

none of the above

2.

After removing all the obviously dominated treatments what are the treatments left for ICER analysis in the right order?

Treatments E, F, then G

Treatments K, E, then J

Treatments K, E, then G

Treatments E, J, then H

Treatments K, E, then F

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

Given information of 6 treatments.

1. treatment does J obviously dominate is:

Since the cost is less and benefit is more for J, it dominates F.

option (d): F is correct

2. After removing all the obviously dominated treatments the treatments left for ICER analysis in the right order are:

Since K has the lowest cost and the ascending order of cost would be K, E,J

option (b): Treatments K, E, then J

Add a comment
Know the answer?
Add Answer to:
Given: Treatment E: Cost = $5,000, benefit = survival rate of 60% Treatment F: Cost = $7,000, ben...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Economic Evaluation problem 1 The following information has been gathered on the costs and effectiveness of...

    Economic Evaluation problem 1 The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In ths prodle, eSts and consequences are not discounted. Treatment A 2% 20 years $10,000 $5,000 Annual follow up costs, all $1,000 Treatment B Mortality rate Life expectancy for survivors Initial treatment cost 5% 10 years $3,000 Follow up costs, year 1 $1,000 $500 subsequent years 31,O00 11000 b. What is the total cost for survivors receiving treatment...

  • 9. Consider a project having the following ten activities sh Maximum Cost Normal Norma Crash Cra...

    9. Consider a project having the following ten activities sh Maximum Cost Normal Norma Crash Cra Time Immediate Weeks Cost Time Activity Predecessors (weeks (S) (weeks(SL Reduced none 3,000 9,000 3,000 3,000 6,000 9,000 3,000 7,000 4,000 6 6,000 8 5,000 2 2,000 4 3,000 B, C 4,000 C, D 6 4,000 2 3.000 E, F 4,000 1 4,000 H, I 8 2,000 7,000 (a) What is the expected project completion time? b) What is the critical path? (c) What...

  • E until K please! Thanks! Saxbury Corporation's relevant range of activity is 3,000 units to 7,000...

    E until K please! Thanks! Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: 6.80 $3.50 1.60 $4.00 $0.75 s 0.60 s 0.50 $0.50 Direct labor Fixed nanufacturing overhead Fixed selling expense Fixed ve expense a. For financial reporting purposes, what is the total amount of product costs incurred to make 4,000 units? b. For financial reporting purposes, what is the total...

  • 16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

    16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $5.30 Direct labor $3.65 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $3.90 Fixed selling expense $0.75 Fixed administrative expense $0.60 Sales commissions $0.50 Variable administrative expense $0.50 Required: f. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred? g. If...

  • 16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

    16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $5.30 Direct labor $3.65 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $3.90 Fixed selling expense $0.75 Fixed administrative expense $0.60 Sales commissions $0.50 Variable administrative expense $0.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?...

  • 1) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

    1) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit I Direct materials S5.30 Direct labor $3.65 I Variable manufacturing overhead S1.50 Fixed manufacturing overhead $3.90 Fixed selling expense S0.75 IlFixed administrative expense S0.60 Sales commissions SO 50 I Variable administrative expense 50.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred...

  • Alabama State University College of Business Administration ACT 526 Advanced Managerial/Cost Accounting Excerise I January 15,...

    Alabama State University College of Business Administration ACT 526 Advanced Managerial/Cost Accounting Excerise I January 15, 2020 Due January 17, 2020 1) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit SS 30 Direct materials Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expert istrative expense Sales commissies Variable administrative expense S1.SO $3.90 0.75 S060 SOSO S0.50 Required:...

  • F10.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land,...

    F10.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) $(275,000) b. Payment for construction from note proceeds 275,000 c. Cost of land fill and clearing 8,000 d. Delinquent real estate taxes on property assumed by purchaser 7,000 e. Premium on 6-month insurance policy during construction 6,000...

  • Could you please break this down step by step Saxbury Corporation's relevant range of activity is...

    Could you please break this down step by step Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 5.30 $ 3.65 $ 1.50 $ 3.90 $ 0.75 $ 0.60 $ 0.50 $ 0.50 Required: a. For...

  • Can someone walk me through manual steps to solve e, f, and g? The Farmer's American...

    Can someone walk me through manual steps to solve e, f, and g? The Farmer's American Bank of Leesburg is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the precedence relationships of the activities, and activity time estimates, as shown in the following table: Time Estimates (weeks) Activity Activity Activity Description Position recruiting System development Predecessor a C A 5 17 ? -- 7 3 12 15 System training...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT