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Question

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 and L Statement.

b. What number of visits required to break even?

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

Top Answer

A. Please find the projected P&L... View the full answer

1.png

The projected P & L statement (Income statement) of the organization is provided below:
Description
Amount ($)
Revenues
400.000
Less: Variable costs:
Medical supplies
50,000
Administrative...

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