Question
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $401,386 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) | $401,386 |
| Wages and benefit | $232,081 |
| Rent | $4,485 |
| Depreciation | $32,871 |
| Utilities | $2,098 |
| Medical supplies | $47,648 |
| Administrative supplies | $10,257 |
Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 25 percent rate. What number of visits is required to provide you with an after-tax profit of $82,134?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
