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You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $414,214 Wages and
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $414,214 Wages and benefit $204,780 Rent $5,337 Depreciation $28,132 Utilities $2,114 Medical supplies $48,508 Administrative supplies $11,790 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 27 percent rate. What number of visits is required to provide you with an after-tax profit of $95,770?
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $414,214 Wages and benefit $204,780 Rent $5,337 Depreciation $28,132 Utilities $2,114 Medical supplies $48,508 Administrative supplies $11,790 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 27 percent rate. What number of visits is required to provide you with an after-tax profit of $95,770? [Hint: Remember that after-tax profit = before-tax profit * (1- tax rate).] (Do not round intermediate calculations. Round your final answer to 2 decimal places. For example, 12.3456 should be entered as 12.35. REMINDER: quantities are always rounded UP. Canvas does not have this capability.) 10,498.39Step by Step Solution
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