Question

Q84

A private health-care clinic has been offered a leasing dealwhere it could lease a CAT scanner at a fixed charge of $2,000 permonth and a charge per patient of $6 per patient scanned. Theclinic currently charges $10 per patient for taking a scan. (a) Atwhat level of demand (in number of patients per week) will theclinic break even on the cost of leasing the CAT scan? (b) Would arevised lease that stipulated a fixed cost of $3,000 per week and avariable cost of $0.2 per patient be a better deal? [3 Marks]