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 visits)400,000

Wages and benefits220,000

Rent5,000

Depreciation30,000

Utilities 2,500

Medical supplies50,000

Administrative Supplies10,000

Assume all costs are foxed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 % rate.

a. Construct a clinics P & L statement

b. What number of visits are needed to break even

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