Reference no: EM13746093
You are considering starting a walk in clinic. Your financial projections for the first year of operation are as follows:
Revenues (10,000 visits) $4000,000 visits
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 cost are fixed, except supply cost, which are variable. furthermore, assume that the clinic must pay taxes at a 30 percent rate.
A. construct the clinic's projected P&L statement.
B. What number of visits is required to break even?
C. What number of visits is required to provide you with an after tax profit of $100,000?
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