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

Revenues (10,000 visits) $400,000
Wages and 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 30 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 S100,000

a.  clinic's projected P&L statement.

Revenues                                  400,000

Less Expenses:

Wages and benefits               (220,000 )

Rent                                             (5,000 )

Depreciation                             (30,000 )

Utilities                                        (2,500 )

Medical supplies                      (50,000)

Administrative supplies            (10,000)

Net Income or (loss) before tax 182,500

Income tax at 30%                     (54,750)

Income or (loss)                          127,750

b. 9,184 visits

c. 12,125 visits

Explanation:

Fixed Costs = 220,000 + 5,000 + 30,000 + 2,500 + 54,750

                    = $312,250

Contribution = Sales - Variable Costs

                     = $400,000 - ($50,000+$10,000)

                     = $340,000

Contribution per unit = $340,000 / 10,000 visits

                                   = $34

Break even point = Fixed Costs / Contribution per unit

                             = $312,250 / $34

                             = 9,184 visits

Units for a Profit target = Fixed Costs + Target Profit / Contribution per unit

                                      = ($312,250 + $100,000) / $34

                                      = 12,125 visits

trade allows people to focus on one kind of production and trade for their other needs. ( d.)

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.