Dr. Alisa Fleur is a dentist who charges (on average)$90 per patient hour for her services. She incurs the following office-related costs per month:
Office rent $1,000
Secretary/receptionist/assistant 2,300
Utilities 400
Total fixed costs $3,700
Dr. Fleur is required to obtain continuing education of 40 hours per year, and she budgeted this cost at an average cost of $800 per month. Due to the nature of her practice, variable costs are minimal, amounting to only $15 per patient hour.
a)How many patient hours does Dr. Fleur need to generate each month to break even?
b)Dr. Fleur would like an after-tax income of $7,000 per month. She is in a 30% tax bracket. How many patient hours does she need each month to produce this income?
c)The doctor enjoys scuba diving in summer and skiing in winter. To pursue these hobbies, she wants to know if she could work 6-hour days and 4-day weeks and still earn the level of income she desires from part (b)above (assume 4 weeks per month). What average charge per patient hour will generate this level of income?
d)Discuss whether the actual amount for each of the fixed costs is likely to vary from the amounts shown above during the next year.

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The Answer of Dr. Alisa Fleur is a dentist who charges (on average)$90 per patient hour for her services. She incurs the following office-related costs per month:
Office rent $1,000
Secretary/receptionist/assistant 2,300
Utilities 400
Total fixed costs $3,700
Dr. Fleur is required to obtain continuing education of 40 hours per year, and she budgeted this cost at an average cost of $800 per month. Due to the nature of her practice, variable costs are minimal, amounting to only $15 per patient hour.
a)How many patient hours does Dr. Fleur need to generate each month to break even?
b)Dr. Fleur would like an after-tax income of $7,000 per month. She is in a 30% tax bracket. How many patient hours does she need each month to produce this income?
c)The doctor enjoys scuba diving in summer and skiing in winter. To pursue these hobbies, she wants to know if she could work 6-hour days and 4-day weeks and still earn the level of income she desires from part (b)above (assume 4 weeks per month). What average charge per patient hour will generate this level of income?
d)Discuss whether the actual amount for each of the fixed costs is likely to vary from the amounts shown above during the next year.

Dr Alisa Fleur Is a Dentist Who Charges (On Average)$90