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

Assume that all costs are fixed, except supply costs (medical and administrative), 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 (revenue covers all accounting costs)?

c. What number of visits is required to produce an after-tax profit of $100,000?

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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