Seattle Radiology Group's CT Scanner Investment: Profitability Analysis
To find the number of scans at which the scanners are equally profitable, we need to compare the profits of each scanner at different volumes.
For Scanner A: Profit = Revenue - Total Cost Profit = ($1,500 x Number of Scans) - $1,000,000
For Scanner B: Profit = Revenue - Total Cost Profit = ($1,500 x Number of Scans) - $800,000
We can set the two profit equations equal to each other and solve for the number of scans:
($1,500 x Number of Scans) - $1,000,000 = ($1,500 x Number of Scans) - $800,000
Simplifying the equation:
$1,500 x Number of Scans - $1,000,000 = $1,500 x Number of Scans - $800,000
$1,500 x Number of Scans - $1,500 x Number of Scans = - $1,000,000 + $800,000
$0 x Number of Scans = - $200,000
Number of Scans = - $200,000 / $0
Number of Scans = Undefined
Therefore, none of the given answers is correct. The scanners are never equally profitable.
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