Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by
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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 Dr. Gulakowicz to expand her practice by as many as 200 patients annually. How many patients would have to be added for the new process to break even?
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Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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