Dr. Na Gu plans to open a radiology office that provides CAT scans. She can lease the CAT scanner for $1,200 per month plus $45 for each imaging session. In addition to the $45 lease cost per imaging session, Dr. Gu must purchase film for each session at a cost of $55. She plans to charge $250 for each session. Dr. Gu has identified a suitable office that she can rent for $1,400 per month. The monthly cost of a receptionist is $2,400 and two radiology technicians are $3,200 each per month. Office furnishings, phones, and office equipment cost $600 per month. She expects that her salary will be $15,000 per month.
Required:
a. How many imaging sessions per month must Littleton Imaging conduct in order for the office to break even?
b. How many imaging sessions per month must Littleton Imaging conduct in order for the office to yield an after-tax profit of $5,000 if the tax rate is 40 percent?
c. Dr. Gu expects that the office will perform 200 imaging sessions per month. How much must she charge per session to break even?
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