you are considering starting a walk-in-clinic


You are considering starting a walk-in-clinic.  Your financial projections for the first year of operations are as follows:

Revenues (10,000 visits)

$400,000

Wages & Benefits

$220,000

Rent

$5,000

Depreciation

$30,000

Utilities

$2,500

Medical Supplies

$50,000

Administrative Supplies

$10,000

Assume that all costs are fixed, except supply costs, which are variable.  Furthermore, assume that the clinic must pay taxes at a 30% rate.

a. Construct the clinic's projected P&L statement.

b. What number of visits is required to break even?

c. What number of visits is required to provide you with an after-tax profit of $100,000?

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Cost Accounting: you are considering starting a walk-in-clinic
Reference No:- TGS0207389

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