What number of visits is required to break-even

Assignment Help Financial Management

Reference no: EM131182623

You are considering a walk-in podiatry clinic. Your financial projections for the first year of operations are as follows Revenues (10,000 visits) $400,000 Wages and Benefits 220,000 Rent 5,000 Depreciation 30,000 Utilities 2,040 Medical Supplies 50,000 Administrative Supplies 10,000 Assume that all costs are fixed except for supply costs, which are variable. Required; a. Construct the clinic’s pro-forma income statement. b. What number of visits is required to break-even. c. What number of visits is required to provide a profit of $100,000?

Reference no: EM131182623

Questions Cloud

Yield to maturity on company long term government bond : You have been given the following facts and assumptions concerning ABC Corp's at December 31. 2013 Yield to maturity on long term government bond is 5 00% Yield to maturity on company long term government bond is 7 0% Coupon rate on company long term..

Compute earnings per share under the dobermab plan : Mr Katz is in the widget business. He currently sells 2 million widgets a year at $4 each. His variable cost to produce the widgets is $3 per unit, and he has $1,500,000 in fixed costs. Compute earnings per share under the Katz plan. Compute earnings..

Banks and small businesses-consumers and large corporations : In a talk at the White House in December 2009, President Barack Obama argued: “Ultimately in this country we rise and fall together: banks and small businesses, consumers and large corporations.” Why in this statement, did the president single out ba..

Firm with low fixed costs and high variable costs : You own a firm with a single new product that is about to be introduced to the public for the first time. Your marketing analysis suggests that the demand for this product could be anywhere between 500,000 units and 5,000,000 units. a firm with low f..

What number of visits is required to break-even : You are considering a walk-in podiatry clinic. Your financial projections for the first year of operations are as follows Revenues (10,000 visits) $400,000 Wages and Benefits 220,000 Rent 5,000 Depreciation 30,000 Utilities 2,040 Medical Supplies 50,..

Mutual mistake involving a basic assumption : In Japan a promise to give property to one party gratuitously cannot be cancelled, regardless of whether or not it is in writing. Which of the following is necessary in order to establish that a mutual mistake involving a basic assumption about the s..

Produce after-tax operating cash inflows : Mike's project will produce after-tax operating cash inflows of $3200 a year for 5 years. The after-tax salvage value of the project is expected to be $2,500 in year 5. The project's inital cost is $10,500. What is the net present value of this proje..

Capital structure-theory and taxes : Capital Structure: Theory and Taxes. Consider two firms in the same industry that operate in frictionless markets. Both firms, DebtHungry and Ner-aBorrower, have identical net operating income of $240000 per year. The riskiness of each company's asse..

What is the operating cash flow under best-case : Assume a project has a sales quantity of8,600 units, plus or minus 5 percent and a sales price of $69 a unit,plus or minus 1 percent. The expected variable cost per unit is $11?3 percent and the expected fixed costs are $290,000plus or minus 2 percen..

User Account

All Pages