Suppose that you need 8,000 units of work (in capacity units) to be performed, and you can hire all the laborers that you want. assume that all income earned by the laborers is paid to them by you, and that all income is spent on nutrition. the capacity curve for each laborer is described as follows: for all payments up to $100, capacity is zero and then begins to rise by 2 units for every additional dollar paid. this happens until an income of $500 is paid out. thereafter, an additional dollar paid out increases capacity by only 1.1 units, until total income paid is $1000. at this point additional payments have no effect on work capacity. assume that you would like to get your work done at minimum cost. describe how many laborers you would hire to get your work done and how much you would pay each of them.

On january 2, 2016, twilight hospital purchased a $94,800 special radiology scanner from bella inc. the scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. the straight-line method of depreciation is used on this scanner. annual operating costs with this scanner are $106,000. approximately one year later, the hospital is approached by dyno technology salesperson, jacob cullen, who indicated that purchasing the scanner in 2016 from bella inc. was a mistake. he points out that dyno has a scanner that will save twilight hospital $26,000 a year in operating expenses over its 3-year useful life. jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. the hospital agrees that both scanners are of equal quality. the new scanner will have no disposal value. jacob agrees to buy the old scanner from twilight hospital for $40,500. if twilight hospital sells its old scanner on january 2, 2017, compute the gain or loss on the sale. prepare an incremental analysis of twilight hospital.