What number of visits is required to break even

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Reference no: EM13974497

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 and 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?

Reference no: EM13974497

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