posted by LaToya on .
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follow:
Revenues (10,000 visit) $400,000
Wages and benefits $220,000
Medical supplies $50,000
Administrative supplies $10,000
Assume that all costs are fixed, expect supply costs, which are varible. Futhermore, assume that the clinic must pay taxes at a 30 percent 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.