Question: Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00

 Doctor J. is considering purchasing a new blood analysis machine to

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. The new machine is expected to have design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively. a) What would be his profit if he were to perform 5,000 HIV blood analysis? b) How many HIV blood analysis would he have to perform in order to break even? | c) How many HIV blood analysis would he have to perform in order to make a profit of $15,000 ? d) If Dr. J. plans to perform 4,500 HIV blood analyses each year, what will be the utilization of this machine?| e) Dr. J. expects to use 80% of effective capacity, how many HIV blood analyses should he expect each year

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