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Question #7 The controller of Belloff Osteopathic Clinic is trying her hand at profit planning. She learned about this in her HLTH 730 class and
Question #7 The controller of Belloff Osteopathic Clinic is trying her hand at profit planning. She learned about this in her HLTH 730 class and feels it might help her project clinic volume needs over the coming year. She developed the following estimates for the coming year: Average gross revenue per visit $175.00 Average uncollectable revenue % per visit 20% Variable costs per visit $ 25 Fixed costs per annum as follows: Salaries Rent Other fixed costs Total fixed costs $ $ $ $ 750,000 80,000 35,000 865,000 The controller wants to find out the following: A-How many clinic visits are required for the operation to break-even based on the above assumptions B-Since her pension is riding on the clinic actually making a profit, how many visits are required for the clinic to earn a profit of $300,000
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