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With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende
With the population aging and 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. Some patients are wealthy and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile wifter tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone costs $8,000, all other items add approximately $2,000 in costs. Estimate the total fixed costs for this additional service, and, assuming a contribution margin of 60 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service. The total estimated fixed costs for this service are $. (Round to the nearest dollar.)
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