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Construct the base case projected profit-loss statement

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Reference no: EM132381222

Wakehurst Walk-In Clinic (WWIC) currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $30 and total fixed costs are $15,000. A business consultant recommends WWIC increase visits to 1,200 per year by reducing the price per visit by $5 and increasing the fixed advertising budget by $5,000.

a. Construct the base case projected Profit & Loss statement.

b. Construct the Profit & Loss Statement incorporating the changes proposed by the consultant.

c. How much more visit volume does WWIC need to breakeven with the proposed changes?

Reference no: EM132381222

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