How many patients could Dr. Hoopes lose before Hoopes Vision becomes unprofitable? Remember that Hoopes Vision only collects 85% of total billings and that it also has to pay co-management and royalty fees. As such, you should start by using the variable income since this value already takes those things into account. From there, you should be able to figure out how much income each surgery actually brings in on average and, in turn, how many of these surgeries Hoopes Vision could lose before its operating profit turned negative.

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To determine how many patients Dr Hoopes could lose before Hoopes Vision becomes unprofitable we nee... View the full answer