Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are considering starting a walk in clinic. Your financial projections for the first year of operation are as follows: Revenues (10,000 visits) $400,000 Wages

You are considering starting a walk in clinic. Your financial projections for the first year of operation are as follows:

Revenues (10,000 visits) $400,000

Wages and benefits $220,000

Rent $5,000

Depreciation $30,000

Utilities $2,500

Medical Supplies $50,000

Administrative supplies $10,000

Assume that all cost are fixed, except supply cost, which are variable. furthermore, assume that the clinic must pay taxes at a 30 percent rate.

A. construct the clinic's projected P&L statement.

B. What number of visits is required to break even?

C. What number of visits is required to provide you with an after tax profit of $100,000?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

state what is meant by the term performance management

Answered: 1 week ago