What number of visits is needed to break even what number

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Reference no: EM13473957

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

Revenues: $400,000

Wages & 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 20 percent rate.

Construct the clinic's projected P&L statement.

What number of visits is required to break even?

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

Reference no: EM13473957

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