You are considering starting a walk-in clinic. Your financial projections for th

Question

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenue (10000 visits) $409699 Wages and benefit $226160 Rent $5349 Depreciation $25568 Utilities $2442 Medical supplies $48524 Administrative supplies $10599 Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. What number of visits is required to provide you with an after-tax profit of $84179?

Explanation / Answer

With 10,000 visits, the after tax profit is calculated as follows

Now, we will change the number of vists to make the after tax profit as 84179

Hence the number of vists should be 11,596 in order to generate the after tax profit of 84,179

Number of Vists 10000 Revenue per vists 409699 Wages/visit 226160 Gross Profit/visit 183539 Rent 5439 Depreciation 25568 Utilities 2443 Medical supplies 48524 Admins supplies 10599 Total prfofit 90966 Tax 27289.8 Profit after tax 63676.2

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