Revenue (10,000 visits)---$400,000

Wages and benefits -------$220,000

Rent----------------------------$5,000

Depreciation------------------$30,000

Utilities-------------------------$2,500

Medical supplies------------$50,000

Admin supplies--------------$10,000

Review the Walk-in clinic data presented in Problem 5.5, Construct projected P & L statements at volume levels of 8,000, 9,000, 11,000 and 12,000 visits.

a. Assume that the base case forecast is 10,000 visits. What is the clinic's degree of operating leverage (DOL) at this volume level? Confirm the net income at the other levels using the DOL combined with the percent changes in volume.