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April 16, 2014

Homework Help: Healthcare Finance

Posted by anonymouscoward on Friday, February 24, 2012 at 3:34am.

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 and 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.

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

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