With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Some patients are wealthy and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone costs $6,000. What types of fixed costs are associated with this service? Assuming fixed costs of adding this mobile service will increase by $22,500 and a desired contribution margin of 35 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service. What types of fixed costs are associated with this service? Select all that apply. VA. Equipment YB. Salaries OC. Materials YD. Insurance The required change in breakeven sales is $ (Round to the nearest dollar.)

With the population aging and patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Some patients are wealthy and prefer the personal service, whereas others are elderly homebounds who cannot get out to the dentist's office. Recreating a dental office in a home requires additional equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop. A portable X-ray machine alone costs $6,000. What types of fixed costs are associated with this service? Assuming fixed costs of adding this mobile service will increase by $22,500 and a desired contribution margin of 35 percent, determine the amount of sales necessary to break even on this increase in fixed costs to offer this additional service. What types of fixed costs are associated with this service? Select all that apply. VA. Equipment YB. Salaries OC. Materials YD. Insurance The required change in breakeven sales is $ (Round to the nearest dollar.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 17E

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