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
DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti

explain any five qualities of accounting profession

H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired  in 2006 when its retained earnings were RM120 million.  The shares in A

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook

Factory Overhead Budget This budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred throughout the budget period.

Price and Quality Aspect of Variance At this point it is serious to understand that all variance has two aspects, a price aspect and a quantity aspect: these two aspects combi

ANGLE OF INCIDENCE:   It is an angle that is created when the entire sales line intercepts the entire cost line from below in the breakeven chart. It is inferred that higher the an

Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where

Balance Sheet                                                                      2010                2011             Assets Cash

behabioural aspect of standard costing on budget