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, 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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Revenues (10,000 visits) Wages and benefits Rent $400,000 220,000 5,000 Depreciation 30,000 Utilities 2,500 Medical supplies 50,000 Administrative supplies 10,000