What If Volume increased/decreased Per Visit Fee to Customers $43

What if Increase or Decrease customer cost Variable Cost Per Visit $5 What if added customer value Net Revenue $548,786 Salaries and Physician Fees 346,250 Non Salary Fixed Costs 318,970 Total Operating Fixed Expenses 665,220 Net Profit (Loss) ($116,434) Volume Breakeven 17,603.07 Per Visit Fee Breakeven $50.808 Variable Cost Per Visit Breakeven ($3.02) Assumptions 1 For FY2014 Tulsa Urgent Care will increase Marketing and Advertising Expenditures by $84,000 (hint: this is added to Non Salary Fixed Costs in an effort to increase per visit volume) 2 Tulsa Urgent Care Center is adding an additional Physician at an annual cost of $204,000 per year (hint: added to the salary and physician line) Assignment 1 Create an Input table to enter the variable data for FY2014 2 Calculate the 3 breakeven scenarios for both FY2013 and FY2014 3 Write a 2 page summary of the challenges that Tulsa Urgent Care will face during their FY2014 Operating Year. Based on the details within the Case Study what changes would you recommend for Tulsa's pricing structure and expense structure. Finally, based on the various "what if" scenarios and breakeven analysis that you have done, what is your recommendation for Tulsa going forward (shut down, do the advertising campaign and expand, or continued operations under current conditions. some latitude on what variables will be suggest doing what if analysis What if volume was higher what does this mean for breakeven How reasonable is this based on info from the case.

Assumptions 1 For FY2014 Tulsa Urgent Care will increase Marketing and Advertising Expenditures by $84,000 (hint: this is added to Non Salary Fixed Costs in an effort to increase per visit volume) 2 Tulsa Urgent Care Center is adding an additional Physician at an annual cost of $204,000 per year (hint: added to the salary and physician line) Assignment

Calculate the 3 breakeven scenarios for both FY2013 and FY2014

Actuals FY2013 14,522 $43 $5 Projections FY2014 Net Revenue Salaries and Physician Fees Non Salary Fixed Costs Total Operating Fixed Expenses Net Profit (Loss) Volume Breakeven Per Visit Fee Breakeven Variable Cost Per Visit Breakeven $548,786 346,250 318,970 665,220 ($116,434)