Answer to Requirement 2.
Break Even Point (Number of Visits) = Fixed Cost / Contribution Margin per Unit
Total Variable Cost = $50,000 + $10,000 = $60,000
Variable Cost per Unit = $60,000 / 10,000 = $6
Sales per Unit = $400,000 / 10,000 = $40
Contribution Margin per Unit = $40 - $6 = $34
Fixed Cost = $220,000 + $5,000 + $30,000 + $2,500
Fixed Cost = $257,500
Break Even Point (Number of Visits) = 257,500 / 34
Break Even Point (Number of Visits) = 7,574
visits
Requirement 3. could not be done, as complete question is not visible.
5.8 You are considering starting a walk in clinic. Your financial projections for the first year...
Study TEXTBOOK SOLUTIONS EXPERT BA Sarch 5.8 You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000) $400,000 Wages and Benefits $220,000 Rent 5,000 Utilities Medical Supplies 50,000 Administrative Supplies 10,000 2,500 Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate Construct the clinics projected P & L statement. What number of vistis...
Please answer question A:
5.8 You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenes (10,000 visits) 400,000 Wages and benefits 220,000 Rent 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 percent rate a. Construct the clinic's projected P&L statement. b. What number of visits...
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 medical supplies and administrative supplies, which are variable. Furthermore, assume that the clinic must pay taxes at 30 percent rate. a. Construct the clinic’s projected P&L statement. b. What number of visits is required...
Problem 2 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 medical supplies and administrative supplies, which are variable. Furthermore, assume that the clinic must pay taxes at 30 percent rate. a. Construct the clinic’s projected P&L statement. EXPENSES AMOUNT INCOME AMOUNT Wages...
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $409,417 Wages and benefit $220,170 Rent $5,488 Depreciation $27,506 Utilities $2,202 Medical supplies $49,434 Administrative supplies $11,771 Assume that all costs are fixed, except supply costs, which are variable. What is the clinic's degree of operating leverage (DOL) at the projected volume?
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are below. Revenue and variable costs are based on the projected number of visits. Medical and administrative supplies are variable costs; all other costs are fixed costs. Medical and administrative supplies are variable costs; all other costs are fixed costs. Projected Visits Revenues Wages & benefits Rent Depreciation Utilities Medical supplies Administrative supplies 15,000 $750,000 300,000 15,000 40,000 7,500 65,000 12,000 a. Construct the...
2. Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician 2,748,360 1,557,615 12,353 1,941 5,333 a. What is the group's revenue per physician? b. What is the group's operating cost per physician? c. What is the group's total operating profit? d. Using your answer in letter C, what is the group's profit per physician? In letter c,...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). P & L Statement Revenue 750,000 (100 x 7500) Variable Costs -187,500 (25 x 2500) Contribution 562,500 Fixed Costs -500,000 Net income/profit 62,500 b. What is...
Dr. Santiago and two of his colleagues are considering opening a new urgent care clinic in a large metropolitan area. Their intent is to provide easy access for patients by having the clinic open 360 days per year, 16 hours each day from 7 a.m. to 11 p.m. The urgent care center would be staffed by a physician, medical assistant, and patient service coordinator for each of the two 8-hour shifts. In order to determine the feasibility of the project,...