General Hospital's CDSC is contemplating purchasing a blood gases analysis machine at a cost of $960,000. Useful like is 10 years. The screening center currently serves 3,000 patients per year, 40% who need blood analysis data as part of their diagnosis tests. The blood samples are presently sent to a private laboratory that charges $200 per sample. In-house variable expenses are estimated to be $125 per sample if the CDSC purchases the analysis machine.

Use the Goal Seek function in Excel to determine the indifference point.