3) The clinic currently averages 70 eye operations per month. One of the
nurses has just learned about a machine that would reduce by $100 per patient the amount of medical supplies needed. It can be leased for
$100,000 annually. Advise the clinic on whether it should lease this
machine.
4) An advertising agency has proposed to the clinic's president that she spend $20,000 per month on television and radio advertising to persuade people that the clinic is the best place to have any eye surgery
performed. Advertising account executives estimate that such publicity would increase business by 40 operations per month. If they are correct and if this increase is not big enough to affect fixed costs, what impact would this advertising have on the clinic's profits?
3) well, the costs will decrease by 70*100*12 = 840K
4) if, as you say, "this increase is not big enough to affect fixed costs" then of course they will lose money