Metrics 8.1 Question Help With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Some patients are wealthy and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone costs $9,000. What types of fixed costs are associated with this service? Assuming fixed costs of adding this mobile service will increase by $17,000 and a desired contribution margin of 30 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service. What types of fixed costs are associated with this service? Select all that apply. A. Equipment B. Salaries C. Insurance D. Materials The required change in breakeven sales is S 56666 (Round to the nearest dollar.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

so I was able to calculate the break-even sales due to the formula of break-even revenue but how would you find the gross profit, revised price, and revised gross margin?

Metrics 8.1
Question Help
With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has
taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Some patients are wealthy
and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires
additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone
costs $9,000. What types of fixed costs are associated with this service? Assuming fixed costs of adding this mobile service will increase by $17,000 and a desired
contribution margin of 30 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service.
What types of fixed costs are associated with this service? Select all that apply.
A. Equipment
B. Salaries
C. Insurance
D. Materials
The required change in breakeven sales is S 56666 (Round to the nearest dollar.)
Transcribed Image Text:Metrics 8.1 Question Help With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Some patients are wealthy and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone costs $9,000. What types of fixed costs are associated with this service? Assuming fixed costs of adding this mobile service will increase by $17,000 and a desired contribution margin of 30 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service. What types of fixed costs are associated with this service? Select all that apply. A. Equipment B. Salaries C. Insurance D. Materials The required change in breakeven sales is S 56666 (Round to the nearest dollar.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Forecasting Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education