You are considering starting a walk-in clinic. Your financial projections for the first year of operations...
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 for break-even? (Hint: At breakeven, there is zero taxable income and hence zero taxes).
c. What number of visits is required to provide you with an after-tax profit of $100,000?
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You are considering starting a walk-in clinic. Your financial
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