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You are considering starting a walk-in clinic. Your financial projections for the first year of operations...

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are below. Revenue and variable costs are based on the projected number of visits. Medical and administrative supplies are variable costs; all other costs are fixed costs.
Medical and administrative supplies are variable costs; all other costs are fixed costs.

Projected Visits

              12,000

Revenues

$650,000

Wages & benefits

300,000

Rent

6,500

Depreciation

40,000

Utilities

4,200

Medical supplies

55,000

Administrative supplies

10,000

a. Construct the clinic's projected P&L statement

b. What is the total contribution margin?

c. What is the contribution margin rate (rounded to the nearest dollar)?

d. What is the clinic's breakeven point?

e. What is the economic breakeven for a profit of $100,000?

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Expert Solution

jeff jeffy answered 1 year ago
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