Question
5.5. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) Wages and
5.5. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) Wages and benefits Rent Depreciation Utilities Medical supplies Administrative supplies $400,000 220,000 5,000 30,000 2,500 50,000 10,000 Assume that all costs are fixed, except supply costs, which are vari- able. Furthermore, assume that the clinic must pay taxes at a 30 per- cent rate. a. Construct the clinics 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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