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What number of visits is required to break even what

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Reference no: EM13587002

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

Revenues:                             $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 20 percent rate.

  1. Construct the clinic's projected P&L statement.
  2. What number of visits is required to break even?
  3. What number of visits is required to provide you with an after-tax profit of $100,000?

Reference no: EM13587002

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