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8. Breakeven Quantity. The CFO wants to know how many CT exams would need to be...

8. Breakeven Quantity. The CFO wants to know how many CT exams would need to be performed to breakeven if the hospital would purchase CT equipment for $2,000,000. Assume the CT revenue per CT exam will be $1,000 and the CT operating expense per exam is $600. Show work please. Breakeven Quantity = ________________________________________________________

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Answer #1

Break Even quantity is the quantity at which firm covers up it's all of the cost,

Calculating Break-Even Quantity,

2,000,000 = Q(1,000 - 600)

Q = 5,000

So,

Breakeven Quantity = 5,000

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