Business: Nursing – Provided In Home To Elderly

# Nurses: 16

Annual Salary/Nurse: $75k

Billing Days/Year/Nurse: 192

Billing Hours/Day: 6

Note: The reason for 192 days and 6 hours is for vacation, training, canceled appointments, etc.

Cost Of Employee Benefits: 25% Of Salary

Invoice Clients Per Hour: $75

Investment In Business: $500k

The Office:

SG&A	Annual Amount
Owner Salary	$125k
Rent… office and training room	$25,000
Front Desk… two people	$80,000
Office Manager… general manager	$100,000
Supplies	$15,000
Professional Fees (Incorporate; Legal; Etc.)	$5,000
Total Estimated Expenses (Fixed Costs)	$50,000
Account Managers… two salary people	$140,000
Cost Benefits At The Office	$80,000

The bookkeeper yelled out in celebration: “I just calculated our annual sales; we made over a million dollars!!! The owner is ecstatic! Time for a party?

Note: “Made” is often stated as the “sales” number; that is wrong! Be Careful! Made actually is “profit.”

Use Student Template Provided – EXCEL

1. What Were The Profits This Year?

2. Additional Invoice Price/Hour To Break Even?

3. New Invoice Price/Hour To Break Even

4. At Break-Even

   1. Cost of Goods Sold?

   2. Gross Profit/Hour?

   3. Margin?

   4. Markup?

5. EXTRA CREDIT

New Invoice/Hour For Owner To Make 10% ROI