Sppose that base case forecast is 10000 visits find the

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Reference no: EM13477056

Revenue (10,000 visits) $400,000

Wages and benefits $220,000

Rent $5,000

Depreciation $30,000

Utilities $2,500

Medical supplies $50,000

Administrative supplies $10,000

Construct projected P&L statements at volume levels of 8000 ,9000, 10000, 11000, 12000 visits.

a. Assume that the base case forecast is 10000 visits. What is the clinic's degree of operations leverage (DOL) at this volume level? Confirm the net incomes at the other volume levels using DOL combined with the percent changes in volume.

b. Now assume that the base case volume is 9000 visits. What is the DOL at this volume?

Reference no: EM13477056

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