General Hospital's CDSC is contemplating purchasing a blood gases analysis machine at a cost of $960,000....

General Hospital's CDSC is contemplating purchasing a blood gases analysis machine at a cost of $960,000. Useful like is 10 years. The screening center currently serves 3,000 patients per year, 40% who need blood analysis data as part of their diagnosis tests. The blood samples are presently sent to a private laboratory that charges $200 per sample. In-house variable expenses are estimated to be $125 per sample if the CDSC purchases the analysis machine.

Use the Goal Seek function in Excel to determine the indifference point.

Solutions

Expert Solution

First put the values below as :

The formula for the Cell C8 is C3*C5-C7-C3*C5 which is my revenue.

Now put the cursor on cell C8 and press ALT +A+W+G in excel to go to goal seek option.

Press Ok as we want the indifferent point which is nothing but the revenue will equal to zero that is why the To value have been set as 0 by changing the value in Cell C5 .

We can find the result in cell C5 as 1280 patients to break even.

ekkarill92 answered 1 year ago

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