Posted by **LaToya** on Saturday, July 21, 2012 at 4:14pm.

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

Rent $5,000

Depreciation $30,000

Utilities $2,500

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.

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