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You are considering starting an urgent care clinic. Your financial projections for the first year of operations are as follows: Revenues (30,000 visits)$5,000,000Wages and Benefits$1,500,000Rent$350,000Depreciation$50,000Utilities$10,000Medical
You are considering starting an urgent care clinic. Your financial projections for the first year of operations are as follows:
Revenues (30,000 visits)$5,000,000Wages and Benefits$1,500,000Rent$350,000Depreciation$50,000Utilities$10,000Medical Supplies$300,000Administrative Supplies$60,000
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.
What are the number of visits to obtain a profit of $500,000 (after taxes)?
a. 10, 159
b. 10, 052
c. 18,235
d. 17,323
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