You are examining a proposal for a new business opportunity. A new procedure can be offered at a price of $1,600. The collection rate is expected to be 80%. Demand is anticipated to be 800 units in year one, growing by 200 units each year thereafter until the end of year five. Each procedure consumes $350 of supplies. Salaries are estimated to be $60,000 a year each for 10 FTEs plus an additional 25% for fringe benefits. Fixed operating costs are $10,000 per month and the annual rent is $20,000/year. Develop a marginal P&L for this business opportunity. Based on that P&L, would you pursue this opportunity?

Please put into excel format