You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues: $400,000 Wages &…

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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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