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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 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 supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.
What number of visits is required to provide you with an after-tax profit of $100,000?
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