Question
St. Elsewhere is considering opening an outpatient clinic for patients who have minor injuries or illnesses. The clinic will be open 24 hours a day,
St. Elsewhere is considering opening an outpatient clinic for patients who have minor injuries or illnesses. The clinic will be open 24 hours a day, 7 days per week; the hospital expects 20,000 patient visits in the first year. The financial projections for year 1 of operations are below:
(A) What is the breakeven volume required for the project?
(B) What is the required volume for the project to generate an estimated $250,000 profit?
(C) What is the maximum the project can spend on medical supplies per patient to breakeven (profit = $0), assuming 20,000 visits?
$200 per patient Average Revenue per Patient $1 million Wages and Benefits Average Medical Supplies Used per Patient $30 per patient $300,000 Interest $200,000 Depreciation $30,000 per month Utilities Miscellaneous $200,000Step by Step Solution
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