Doctor J Is Considering Purchasing a New Blood Analysis Machine to to Test

question 205

Multiple Choice

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?

• A)$0
• B)$40,000
• C)$60,000
• D)$25,000
• E)$100,000

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Definitions:

Income Ratios

Financial ratios that measure a company's ability to generate profit from its operations, commonly used in analyzing financial health and operational efficiency.

Retirement

The act of leaving one's job or profession and ceasing to work, typically after reaching a certain age or financial milestone.

Capital Account

In finance, it represents an individual's or entity's financial net worth or in international economics, it is part of a country's balance of payments.

Income Ratios

Financial metrics that compare various aspects of a company’s income to its sales, assets, or equity, to assess financial performance.