Inpatient charges are $550,000 and will probably be 3% higher than projected and that outpatient charges 310,000 are expected to increase by 8% and that your research grant which is 29,000 will be reduced by half. Salary expenses (260,00) will likely be 2% higher than originally anticipated. You are required to show a project net profit of at least 50%.

The cont education net of 3,200 has been canceled.

Revenue & income

Inpatient charges 550,000

Outpatient charges 310,000

Research grants support. 29000

Cont education 3,200

Supplies & Equip sales. 11,500

Total Revenue $903,700

Expenses

Salaries 260,000

Consult 2,500

Honorarium 1,500

Minor equip 6,000

Equip rental 2,000

Travel 2,500

Supplies 6,000

Postage 350

Copy 11,000

Advertisement 1,500

Dues 800

Equip maintenance 2,000

Total direct expenses 301,500

Indirect

Employees benefit (23%) 59,800

Adm 23,000

Equip dep 7,200

Physical plant 39,000

Main & repair 2,000

Laundry 2,500

Housekeeper 4,900

Total indirect expenses 144,400

Total expenses. 445,900

Net profit or loss 457,800