Doctor E. is considering purchasing a blood analysis machine to test for leukemia; it will cost $78,000. He estimates that he could charge $32.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $8.00. What would the profit be for a quantity of 11,900 leukemia blood analyses?
Doctor E. is considering purchasing a blood analysis machine to test for leukemia; it will cost $78,000. He estimates that he could charge $32.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $8.00. What would the profit be for a quantity of 11,900 leukemia blood analyses?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
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
Transcribed Image Text:Doctor E. is considering purchasing a
blood analysis machine to test for leukemia; it
will cost $78,000. He estimates that he could
charge $32.00 for an office visit to have a
patient's blood analyzed, while the actual cost
of a blood analysis would be $8.00. What
would the profit be for a quantity of 11,900
leukemia blood analyses?
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