Solution-What number of visits is required to provide with

What number of visits is required to provide with after-tax

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Reference no: EM132836833

Asks for the number of visits to provide you with after tax profit of $100,000At a 30% tax rate the profit required to have an after tax profit of this amount is solve by the formula:

After tax profit = Before tax profit (BTP) minus (BTP times the tax rate)

100,000 = BTP - (BTP-.30)
100,000 = .70 BTP
BTP = 100,000/.70
BTP = $142,857

You are considering starting a walk-in clinic. You're 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.

Problem 1: What number of visits is required to provide you with an after-tax?

Reference no: EM132836833

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What number of visits is required to provide with after-tax

Reference no: EM132836833

Reference no: EM132836833

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