ROI for an investment center. A new cardiac catheterization lab was constructed at Have a Heart Hospital. The investment in this lab was $950,000 in equipment costs and $50,000 in renovation costs. A...

ROI for an investment center. A new cardiac catheterization lab was constructed at Have a Heart Hospital. The investment in this lab was $950,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab was operating, 7,000 patients were served in the first year and were charged $640 for each procedure. The annual fixed cost for the catheterization lab is $2 million, and the variable cost is $329 per procedure. What was the catheterization lab’s profit? Did this profit meet its desired ROI?