Construct p&l statement , Cost Accounting

You are considering starting a walk-in-clinic.  Your financial projections for the first year of operations are as follows:

Revenues (10,000 visits)

$400,000

Wages & Benefits

$220,000

Rent

$5,000

Depreciation

$30,000

Utilities

$2,500

Medical Supplies

$50,000

Administrative Supplies

$10,000

Assume that all costs are fixed, except supply costs, which are variable.  Furthermore, assume that the clinic must pay taxes at a 30% rate.

a. Construct the clinic's projected P&L statement.

b. What number of visits is required to break even?

c. What number of visits is required to provide you with an after-tax profit of $100,000?

Posted Date: 2/27/2013 7:11:38 AM | Location : United States







Related Discussions:- Construct p&l statement , Assignment Help, Ask Question on Construct p&l statement , Get Answer, Expert's Help, Construct p&l statement Discussions

Write discussion on Construct p&l statement
Your posts are moderated
Related Questions
1. Suppose your company needs to raise $30 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 8 percent, and you're


In this exercise you will familiarize yourself with index models, beta and CAPM estimation. Download the spreadsheet data_question3.xlsx from Sakai and use the data contained there

The following information pertains to Tudor Logistics Company: 200X Information: Sales                                      $4,875,000 Selling expense

The following details are available from a company:                                                  2003                 2004                                      2003


Describe briefly the possible causes of: (i)   the material usage variance, (ii)  the labour rate variance, (iii)  the sales volume profit variance.

USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4

Q. Calculate contribution to sales ratio? Contribution per unit= sales price per unit less variable cost per unit Break-even volume = Fixed overhead/Contribution per uni

Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked your assistance in preparing cash-flow information for the last three months of this year. Sele