Determine the break$-$even point. Show your work. Answer the following questions after you calculate the BE point.

If the physician refers $500$ X$-$rays per year, is it wise to add this service to her practice?

If break$-$even point shows that she would lose money by offering the radiology service, what factors could she alter to afford the service?

If the physician wanted to make a $$10,000$ profit, what would the BE point be$?$

Cost of new radiology equipment$--$$$75,000$ over $3$ years.

Increase in malpractice insurance$--$$$10,000$

Expected revenue per test$--$$$250$

Cost of supplies$--$$$15$

Salary for Rad. Tech$--$$$40,000$

Radiologist fee$--$$$45$

Formula: Fixed costs $+$ Annual Equipment cost $/$ Revenue $-$ Variable Expenses $=$ Break Even Point.

Profit formula: Same as BE point formula, but add the desired profit to the fixed costs.