You are considering starting a walk-in clinic. Your financial projections for the first year of operations...

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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:

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?

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Answer 1

Answer #1

$ 409,417 $ 49,434 $ 11,771 S 348,212 Revenue (10000 visits) Less: Variable Medical supplies Administrative supplies Contribu

*Please rate thumbs up Degree of operating leverage =Contribution margin/EBIT = $348,212/$92,846 =3.75 *Please rate thumbs up

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You are considering starting a walk-in clinic. Your financial projections for the first year of operations...

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