CREATE AN EXCEL SPREADSHEET TO CALCULATE THE ANSWER TO THIS QUESTION. SUBMIT YOU

Question

CREATE AN EXCEL SPREADSHEET TO CALCULATE THE ANSWER TO THIS QUESTION. SUBMIT YOUR ANSWER IN A SPREADSHEET IN QUESTION #2. DO NOT ENTER AN ANSWER HERE! You are considering opening a new urgent care facility and have the following projected data: Revenues (11,000 visits) $1,175,000 Salaries, wages, & benefits $350,000 Supplies 120,000 Rent 6,000 Depreciation 12,000 Repairs & maintenance 5,000 Assume that 75% of salaries/wages benefits and 100% of supplies are variable and that all other costs are fixed. IN AN EXCEL SPREADSHEET YOU SUBMIT FOR QUESTION 2, SHOW THE FOLLOWING CALCULATIONS a Construct the clinic's pro forma P&L; b. Calculate the number of visits needed to break even What number of visits is required to generate an after-tax profit of $250,000, given a 35% tax rate?

Explanation / Answer

variable fixed Salaries 350000*75% =262500 87500 Supplies 120000 0 Rent 6000 Dep 12000 Repair & Maint. 5000 Total 382500 110500 a) Profit and Loss account: Revenue 1175000 Less: Expenses: Salaries 350000 supplies 120000 rent 6000 depreciation 12000 repair and maint. 5000 Total expenses 493000 Net Income 682000 b) Break even (visits) = Fc /contribution per visit 110500 /(1175000-382500)/11000 = 110500/72.05 =1534 visits c) total contribution required = 110500+250000/0.65=495115 number of units required = 495115/72.05 = 6872 visits

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.