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You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (20,000 visits) $1,000,000 Wages and
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:
Revenues (20,000 visits) | $1,000,000 |
Wages and benefits | 400,000 |
Rent | 20,000 |
Depreciation | 50,000 |
Utilities | 5,000 |
Medical supplies | 100,000 |
Administrative supplies | 20,000 |
Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 35 percent rate.
1) What is the breakeven number of visits?
2) What are the number of visits to obtain a profit of $500,000
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