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You are thinking about opening a new clinic in your home town. Your financial projections for the first year of operations are as follows: Sales
You are thinking about opening a new clinic in your home town. Your financial projections for the first year of operations are as follows: Sales (10,000 visits) $ $ 500,000 Wages $ 220,000 fixed Rent $ $ 5,000 fixed Depreciation $ 30,000 fixed Utilities $ 2,500 fixed Supplies $ $ 50,000 variable Assume a tax rate of 21% a) b) c) d) e) Prepare an internal Income Statement Calculate Break-Even in units and in Sales Dollars What number of visits is required to provide a target of $100,000 before tax What number of visits is required to provide a target of $100,000 after tax Calculate the degree of operating leverage
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