Dr. Gulakowicz is an orthodontist. She estimates that add-ing two new chairs will increase fixed costs by $155,000,including the annual equivalent cost of the capital invest-ment and the salary of one more technician. Each newpatient is expected to bring in $2,920 per year in additionalrevenue, with variable costs estimated at $1,010 per pa-tient. The two new chairs will allow Dr. Gulakowicz toexpand her practice by as many as 200 patients annually.How many patients would have to be added for the newprocess to break even?
Dr. Gulakowicz is an orthodontist. She estimates that add-ing two new chairs will increase fixed costs by $155,000,including the annual equivalent cost of the capital invest-ment and the salary of one more technician. Each newpatient is expected to bring in $2,920 per year in additionalrevenue, with variable costs estimated at $1,010 per pa-tient. The two new chairs will allow Dr. Gulakowicz toexpand her practice by as many as 200 patients annually.How many patients would have to be added for the newprocess to break even?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Dr. Gulakowicz is an orthodontist. She estimates that add-
ing two new chairs will increase fixed costs by $155,000,
including the annual equivalent cost of the capital invest-
ment and the salary of one more technician. Each new
patient is expected to bring in $2,920 per year in additional
revenue, with variable costs estimated at $1,010 per pa-
tient. The two new chairs will allow Dr. Gulakowicz to
expand her practice by as many as 200 patients annually.
How many patients would have to be added for the new
process to break even?
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