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4. An advertising agency has proposed to the hospital's president that she spend $20,000 per month on television and radio advertising to persuade people that

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4. An advertising agency has proposed to the hospital's president that she spend $20,000 per month on television and radio advertising to persuade people that Southwest Hospi- tal is the best place to have any eye surgery performed. Advertising account executives estimate that such publicity would increase business by 40 operations per month. If they are correct and if this increase is not large enough to affect fixed costs, what impact would this advertising have on the hospital's profits? Use Excel to graph the cost and revenue functions in this scenario, 6. In case the advertising Agency is being overly optimistie, how many extra operations per month are needed to cover the cost of the proposed ads? 6. If the ad campaign is approwd and subspently nets its projections, should the hospital review its decision about the machine discussed in Question 3

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