A private healthcare clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of €2000 per month and a charge of €6 per patient scanned. The clinic currently charges €10 per patient for taking a scan.
(a) At what level of demand (in number of patients per week) will the clinic break even on the cost of leasing the CAT scan?
(b) Would a revised lease that stipulated a fixed cost of €3000 per week and a variable cost of €0.2 per patient be a better deal?