With the population aging and increasing numbers of older patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Recreating a dental office in a home requires additional, expensive equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop in addition to a vehicle. A portable X-ray machine alone costs $4,000. Refer to Increase Distribution Coverage in Appendix 2: Marketing by the Numbers to answer the following questions.

What are some of the fixed costs are associated with such home service? Assuming that the total fixed costs of adding this mobile service are $25,000 and the desired contribution margin is 60 percent, determine the dollar volume of sales necessary to break even on such home service.

Data from appendix 2