Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 1P
Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimated at $1,000 per patient. 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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Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by
$149,000,
including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in
$3,040
per year in additional revenue, with variable costs estimated at
$1,030
per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as
205
patients annually. How many patients would have to be added for the new process to break even?
Part 2
The break-even volume is
enter your response here
patients. (Enter your response rounded to the nearest whole number.)
Please download and review/read the case study of Happy Valley Medical Practice Offices:
Happy Valley Medical Practice Offices - Case Study-1.pdfDownload Happy Valley Medical Practice Offices - Case Study-1.pdf
The case study provides the following:
Background data
Documentation of the current state of: Provider visit, Nurse/MA visit, Lab-only visit
for implementing an EHR and its impact on "patient flow".
Now, let's work on the vision and the goals of the practice.
To be successful, you have to have a vision of what you want your practice to look like after the EHR is implemented. Describe what you think the goals could be for your practice. Keep in mind that any time a new system is implemented, a somewhat painful transition period can be expected. Be sure to address the following prompts in your response:
Is your practice adopting an EHR to improve patient flow throughout the office?
What "vision" do you get from the physician leaders?
What specific problems do you think the…
Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $9 million and unit variable costs of $5 per pair. Ace is considering a switch from manual labor to an automated process. New equipment would cost an additional $4 million per year while lowering variable costs by $3 per shoe repair kit. How many kits would Ace have to sell at $17 per pair to make $2 million in profits in the next year with the automated process?
Chapter 2 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Consider the range of processes in the financial...Ch. 2 - Prob. 6DQCh. 2 - Continuous improvement recognizes that many small...Ch. 2 - Prob. 8DQCh. 2 - Paul O’Neill, former U.S. Treasury Secretary,...Ch. 2 - Dr. Gulakowicz is an orthodontist. She estimates...Ch. 2 - Two different manufacturing processes are being...Ch. 2 - The operations manager at Sebago Manufacturing is...
Ch. 2 - Consider the Custom Molds, Inc., case at the end...Ch. 2 - Founded in 1970, ABC is one of the world’s...Ch. 2 - Prepare a flowchart of the field service division...Ch. 2 - Big Bob’s Burger Barn would like to graphically...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - A time study of an employee assembling peanut...Ch. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Smith, Schroeder, and Torn (SST) is a short-haul...Ch. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 1AMECh. 2 - What percentage of overall complaints do the three...Ch. 2 - Prob. 3AMECh. 2 - Prob. 1VCCh. 2 - What are the benefits that the POI program can...Ch. 2 - Prob. 3VCCh. 2 - What are the major issues facing Tom and Mason...Ch. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 2.1CCh. 2 - Prob. 2.2CCh. 2 - Prob. 2.3C
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