What number of visit is required to break-even

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St Barnabas Hospital is opening a satellite office. Your financial projections for the first year of operations are as follows:

Revenues (10,000) $500,000
Wages and Benefits $350,000
Rent 8,000
Depreciation 50,000
Utilities 4,500
Medical Supplies 70,000
Administrative Supplies 20,000

Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.

Question 1: Construct the clinics projected P & L statement.

Question 2: What number of visit is required to break-even?

Question 3: What number of visits is required to provide you with an after-tax profit of $100,000?

Reference no: EM132657071

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