Assume that all cost are fixed except supply cost which are


You are considering starting a walk in clinic. Your financial projections for the first year of operation are as follows:

Revenues (10,000 visits) $4000,000 visits

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 cost are fixed, except supply cost, which are variable. furthermore, 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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Financial Accounting: Assume that all cost are fixed except supply cost which are
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