Reference no: EM132693133

Problem 1: What is the percentage (%) of net profit according to this projected budget? Is the percentage (%) greater than or less than 50%?

I. Revenue and Income
A. Inpatient Charges $566,500
B. Outpatient Charges 334,800
C. Research Grant Support 14,500
D. Continuing Education Conference 0
E. Supplies and Equipment Sales 11,500
Total Revenue $927,300
II. Expenses
Direct Expenses
A. Salaries $265,200
B. Consultant 2,500
C. Honorarium 1,500
D. Minor Equipment 6,000
E. Equipment Rental 2,000
F. Travel 2,500
G. Telephone 5,000
H. Supplies 6,000
I. Postage 350
J. Copy Machine Rental 11,000
K. Advertisement 1,500
L. Dues 800
M. Books 350
N. Equipment Maintenance and Service Contracts 2,000
Total Direct Expenses $306,700
III. Indirect Expenses
A. Employee Benefits (23%) $60,996
B. Administration 23,000
C. Equipment Depreciation 7,200
D. Physical Plant Operation 39,000
E. Maintenance and Repairs 2,000
F. Building Depreciation 6,000
G. Laundry/Linen 2,500
H. Housekeeping 4,900
Total Indirect Expenses $145,596
Total Expenses $452,296
Net Profit or Loss $475,004