Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. 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 the Dr. to expand her practice by and many as 200 patients annually. How many patients would have to be added for the new process to break even?

2. Two different manufacturing processes are being considered for making a new product. The first process is less capital intensive, with fixed costs of only $50,000 per year and variable costs of $7,000 per unit. The second process has fixed costs of $400,000 but variable costs of only $300 per unit.

a. What is the break even quantity, beyond which the second process becomes more attractive than the first?
b. If the expected annual sales for the product is 800 units, which process would you choose?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927999

Have any Question? 


Related Questions in Basic Finance

You purchased an mri scanner two years ago for 20 million

You purchased an MRI scanner two years ago for $2.0 million. The MRI has a 5-year depreciable life with no salvage value. If that same MRI now costs $3.0 million, what would the difference between replacement cost deprec ...

Discussion 1ratio analysisusing the ashford university

Discussion 1 Ratio Analysis Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis ...

Explain why a well-capitalized domestic banking system

Explain why a well-capitalized domestic banking system might be important for the successful maintenance of a fixed exchange-rate regime.

Q1 an on-line retailing firm conducts a study into the

Q1. An on-line retailing firm conducts a study into the number of on-line purchases of footwear made during all of last year. The study wants to determine the proportion of Australians over the age of 25 who purchase foo ...

Create and following a budget helps individuals manage

Create and following a budget helps individuals manage their money and prevents overspending. Please put the following information in the blanks below. In blank 1, create a budget for Jessie Robinson, whose information i ...

Suppose there are 3 stocks with the same expected return of

Suppose there are 3 stocks with the same expected return of 10% per year and the same risk (standard deviation) of 50%. The correlation between any 2 of them is 0.5. 1) What is the risk of equal-weighted portfolio of 3 s ...

Provide a short discussion or definition of the following

Provide a short discussion or definition of the following terms: economics, finance, the financial system, net lenders, net borrowers, direct and indirect finance, financial markets, financial intermediaries, liquidity, ...

Use your no 2 pencil to write down your views on this

Use your no. 2 pencil to write down your views on this trade-and-environment debate: According to the Rainforest Action Network (RAN), a rain-forest wood called jelutong is being logged at a dangerous rate in Indonesia. ...

Economy a and economy b are similar in every way except

Economy A and Economy B are similar in every way except that in Economy A, 70 percent of aggregate expenditure is sensitive to changes in the real interest rate and in Economy B, only 50 percent of aggregate expenditure ...

Mike is taking 2 classes this summer he is taking stat and

Mike is taking 2 classes this summer. He is taking Stat and History. He knows that he will earn either pass or fail each class. The results in each class are independent of one another. He also knows that he has a 10% ch ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate