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December 31, 2022

You want to update a car with a navigation system.

You want to update a car with a navigation system. Adding this feature requires a flat fee of $500, and the service provider requires a monthly charge of $20. In your business, as the owner, you estimate that the device can save time and money, about $35 per month. You plan to keep the car for another 3 years. 1. Calculate the break even point for the device in months. 2. Based on your calculation, would you have the system installed in your car? Why or why not? 3. Tell how and why similar break— even analysis may be applicable in health care organizations.

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