Question
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $396,288 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) | $396,288 |
| Wages and benefit | $232,201 |
| Rent | $4,236 |
| Depreciation | $27,121 |
| Utilities | $2,731 |
| Medical supplies | $46,103 |
| Administrative supplies | $11,097 |
Assume that all costs are fixed, except supply costs, which are variable. What is the clinic's degree of operating leverage (DOL) at the projected volume?
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
