Question 1

Review the walk-in data presented below. Taxes are assumed to be 30%.

Revenues (10,000 visits)	$ 1,000,000
Wages and benefits	$ 220,000
Rent	$ 5,000
Depreciation	$ 30,000
Utilities	$ 2,500
Medical supplies	$ 30,000
Administrative supplies	$ 20,000

Construct a projected P&L statements at volume levels of 7,000 units. What would be the total revenues for this projected volume of 7,000 units?

Question 2

Review the walk-in data presented below. Taxes are assumed to be 30%.

Revenues (10,000 visits)	$ 1,000,000
Wages and benefits	$ 220,000
Rent	$ 5,000
Depreciation	$ 30,000
Utilities	$ 2,500
Medical supplies	$ 30,000
Administrative supplies	$ 20,000

Construct a projected P&L statements at volume levels of 6,000 units. What would be the total variable costs for a volume of 6,000 units?

Question 3

Review the walk-in data presented below. Taxes are assumed to be 30%.

Revenues (10,000 visits)	$ 1,000,000
Wages and benefits	$ 220,000
Rent	$ 5,000
Depreciation	$ 30,000
Utilities	$ 2,500
Medical supplies	$ 30,000
Administrative supplies	$ 20,000

Construct a projected P&L statements at volume levels of 10,000 units. What would be the total fixed costs for a volume of 10,000 units?

Question 4

Review the walk-in data presented below. Taxes are assumed to be 30%.

Revenues (10,000 visits)	$ 1,000,000
Wages and benefits	$ 220,000
Rent	$ 5,000
Depreciation	$ 30,000
Utilities	$ 2,500
Medical supplies	$ 30,000
Administrative supplies	$ 20,000

Construct a projected P&L statements at volume levels of 13,000 units. What is the taxable income for a volume of 13,000 units?

Question 5

Review the walk-in data presented below. Taxes are assumed to be 30%.

Revenues (10,000 visits)	$ 1,000,000
Wages and benefits	$ 220,000
Rent	$ 5,000
Depreciation	$ 30,000
Utilities	$ 2,500
Medical supplies	$ 30,000
Administrative supplies	$ 20,000

Construct a projected P&L statements at volume levels of 22,000 units. What is the profit for a volume of 22,000 units?

Question 6

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on this scenario, what is the contribution margin for a volume of 1,000 units?

Question 7

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on this scenario, what is the profit for a volume of 1,000 units?

Question 8

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on this scenario, what are the revenues for a volume of 1,200 units?

Question 9

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on this scenario, what are the profits for a volume of 1,200 units?

Question 10

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on the base case scenario, what is the volume required to breakeven?

Question 11

Longhorn Clinic currently provides 1,000 visits per year at a price of $50 per visit. The variable cost per visit (variable cost rate) is $25, and total fixed costs are $10,000. The business manager suggests that Longhorn Clinic can increase the number of visits to 1,200 per year by cutting the price per visit by $10 and increasing the fixed advertising budget by $5,000.

Based on the proposed changes in this scenario, what is the volume required to break

Question 12

Charity Hospital, a not-for-profit, has a maximum capacity of 15,000 discharges per year. Variable patient service costs are $300 per discharge. Variable general and administrative costs are $20 per discharge. Fixed hospital overhead costs are $3,500,000 per year. The current reimbursement rate is $1,500 per discharge.

What is the volume required to breakeven?