Opening a walk-in clinic
Discipline: Health Care
Type of Paper: Essay (any type)
Academic Level: High school
Paper Format: APA
Question
You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:
Revenues: $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 20 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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