St. Elsewhere is considering opening an outpatient clinic for patients who have minor injuries or illnesses. The clinic will be open 24 hours a day, 7 days per week; the hospital expects 20,000 patient visits in the first year. The financial projections for year 1 of operations are below:
Average Revenue per Patient $200 per patient
Wages and Benefits $1 million
Average Medical Supplies Used per Patient $30 per patient
Interest $300,000
Depreciation $200,000
Utilities $30,000 per month
Miscellaneous $200,000
(A) What is the breakeven volume required for the project? $
(B) What is the required volume for the project to generate an estimated $250,000 profit? $
(C) What is the maximum the project can spend on medical supplies per patient to breakeven (profit = $0), assuming 20,000 visits? $