If break-even analysis is given as follows: (SEE charts below) with break even calculated as 45 visits a day to break even (using formula fixed cost/revenue per unit-variable cost)

Allocation for next 3 yrs:

2020: $84,357

2021: $86,888

2020: $89,494

Additional Operating and Financial Information Doral Urgent Care Center The Center had an average of 42 visits per day in 2018 and is projected to see an average 46 patients per day in 2019. The center has a capacity to see 80 patients per day Cancellation of the lease will incur a penalty of 6 months of rent, or $89,118 Incremental volume increases the variable costs proportionately The hospital overhead expenses are expected to increase by 3% annually Hospital allocation is based on number of visits The hospital will continue to incur the same expenses whether the center closes or not.Danie General Hospital Doral Urgent Care Center Statement ofOp-erations Actual for the years 2017 and 2018, Projections for the year 2019 2019 2017 2018 Inc '36 Inc Projections Number of Visits 14,235 15,330 1,095 7.7% 16,790 Net Revenues $540,930 $597,870 $56,940 10. 5% $671,6l1] Expenses: Salaries and wages $156,870 $1$,949 $12,079 7.7% $181,950 Physician fees 204,111] 219,708 15,708 7.7% 236,621 Malpractice insurance 32,820 33,805 985 3.0% 34,820 Travel and education 3,5l1] 5,511] 2111] 57.1% 5,5l1] General insurance 7,850 8,050 221] 2.5% 8,2l1] Subscription E2 265 13 5.2% 3(1] Electricity 11,153 12,924 1,771 15.9% 14,975 Water 1,150 1,350 2(1] 17.4% 1,511] Equipment rental 2,5l1] 2,5111] - 0.0% 2,5l1] Building lease 168111] 173,040 5,040 3.0% 178,236 Total Expenses $588,095 $626,091 $37,996 ' 6.5% $664,606 Income before allocation {$47,165} {$28,221} $18,944 $6,994 Allocation from Hospital $75111] $78,l11] 3,l11] 4.0% $81,9l1] Net Profit or Loss {$122,155} {$105,221} $15,944 {$24,905} Dede General Hospital Dora] Urgent Care Center Financial Analysis for 2019 Number of visits 16,?90 Net revenues $671,600 Cost per visit $40 Income before allocation $6,994 Allocation $8 1,900 Net prot or loss $?4,906 Fixed Costs Expenses Amount Cost per unit Salaries and wages $181,950 $10.34 Malpractice insmance $34,820 $2.03ll Travel and education $5,500 $0.33 General insurance $8,200 $0-49 Subscription $300 $0-02 Building lease $ 178,236 $10.62 Total cost $409,006 824.36 Variable Costs Expenses Amount Cost per unit Physician fees $236,625 $14.09 Equipment rental $2,500 $0.15 Electricity $14,975 $0.89 Water $1,500 $0.09 Total cost $255,600 815.22 Contribution margin $416,000 82438