Table 1
Better Care Clinic
Historical Financial Data
Daily Averages
CY 2017 Jan/Feb18
Number of visits	41	45
Net revenue	$1,524	$1,845
Salaries and wages	$ 428	$ 451
Physician fees	533	600
Malpractice insurance	87	107
Travel and education	15	0
General insurance	22	28
Utilities	41	36
Equipment leases	4	5
Building lease	400	417
Other operating expenses	288	300
Total operating expenses	$1,818	$1,944
Net profit (loss)	($ 294)	($ 99)

Table 2
Better Care Clinic
Incremental Cost Data
Variable Costs:
Medical supplies	$4.00 per visit
Administrative supplies	1.00
Total variable costs	$5.00 per visit
Semi fixed Costs:
Salaries and wages	$ 100
Physician fees	267
Total daily semi fixed costs $	$367

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic's average day for all of 2018, assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?

2. How many additional daily visits must be generated to break even?

3. Thus far, the analysis has considered the clinic's near-term profitability, that is, an average day in 2018. Redo the forecasted profit and loss statement developed in Question 1 for an average day in 2023, five years hence, assuming that volume stays constant (does not increase). (Hint: You must consider likely changes in revenues and costs due to inflation and other factors. The idea here is to see if the clinic can "inflate" its way to profitability even if volume remains at its current level.)