Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?

Question

Quizplus · Accepted Answer

The profit is calculated as (Revenue - Costs). Revenue from 5,000 analyses is 5,000 * $25 = $125,000. The cost includes the machine ($60,000) and the cost of analyses (5,000 * $5 = $25,000). Total cost is $60,000 + $25,000 = $85,000. Profit is $125,000 - $85,000 = $40,000.

Doctor J Is Considering Purchasing a New Blood Analysis Machine to to Test