Assignment:
Spreadsheet contains a model that will assist you in answering the following questions. You should replace the cells in red with the "appropriate" numbers, which may depend on your assumptions.
1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2014 assuming the status quo. Explain why you choose the numbers you did. With no change involume (utilization), is the clinic projected to make a profit?
2. Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a breakeven graph that can be included in your report.
3. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented.
4. Now focus solely on the expected profitability of the proposed marketing program. How many incremental daily visits must the program generate to make it worthwhile? Construct a breakeven graph. Is the clinic profitable at this point?
5. What is your final recommendation concerning the future of the walk-in-clinic? Consider both the numerical analysis you just conducted and the whether the clinic has any value to the hospital beyond the numerical analysis (i.e. Do the actions by Baptist Hospital have any bearing on the final decision regarding the clinic)?
Attachment:- Case Break-Even Analysis.rar