Doctor J.is considering purchasing a new blood analysis machine for $60,000.He estimates that he could charge $80.00 for an office visit to have a patient's blood analyzed,while the variable cost of a blood analysis would be $30.00. How many blood analyses would he have to perform in order to make a profit of $50,000?

Question

Quizplus · Accepted Answer

To make a profit of $50,000 on top of recovering the $60,000 cost of the machine, Doctor J. needs to make a total of $110,000. Each blood analysis provides a profit of $50 ($80 charge - $30 variable cost). To find out how many analyses are needed to reach $110,000, divide the total required profit by the profit per analysis: $110,000 / $50 = 2,200 analyses.

Doctor JIs Considering Purchasing a New Blood Analysis Machine for $60,000