Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $ 145 comma 000$145,000, 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 comma 010$3,010 per year in additional revenue, with variable costs estimated at $ 970$970 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 190190 patients annually. How many patients would have to be added for the new process to break even?
Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $ 145 comma 000$145,000, 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 comma 010$3,010 per year in additional revenue, with variable costs estimated at $ 970$970 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 190190 patients annually. How many patients would have to be added for the new process to break even?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by
$ 145 comma 000$145,000,
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 comma 010$3,010
per year in additional revenue, with variable costs estimated at
$ 970$970
per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as
190190
patients annually. How many patients would have to be added for the new process to break even?
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