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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?
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