Hcm 214 (2) Financial management for Healthcare

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Q1. Why might an organization enter a leasing arrangement? Based on a hypothetical example or a situation explain in detail (Based on Chapter 8 – Capital Financing for Healthcare providers) ( 3 Marks)

Q2. Briefly describe what happens to each of the following as volume increases. Assume all values stay within their relevant range.  (Based on Chapter 9 – Using Cost Information to make special decisions) 
 (2 Marks) 
a. Total fixed cost?
b. Total variable cost?
c. Fixed cos-t per unit?
d . Variable cost per unit?

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• Line spacing should be 2.0.
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