5.5 You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:
Wages & Benefits: $220,000
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.
- Construct the clinic’s projected P&L statement.
- What number of visits is required to break even?
- What number of visits is required to provide you with an after-tax profit of $100,000?