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

Revenues (10,000) $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 cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.

Construct the clinics projected P & L statement.

What number of visit is required to break-even?

What number of visits is required to provide you with an after-tax profit of $100,000?