Instructions:

A. Prepare a monthly budget in Excel based on the following assumptions:

1. Your clinic anticipates 110 patients in January, but this patient volume is expected to increase 12% per month thereafter.

2. Average charge (price) per patient will be $80 and price is not expected to change during the year.

3. Salaries and wages expense is estimated to be a fixed amount of $5,000 per month plus a variable amount equal to 30% of monthly revenues.

4. Rental expense is estimated to be constant at $3,000.

5. Supplies expense is estimated at 6% of monthly revenues.

6. Other expense are estimated at a fixed amount of $500 per month plus a variable amount equal to 4% of monthly revenues.

B. What is the minimum volume needed to make a profit?