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:

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?

The correct answer is 10,832.88   Please help me understand how to solve this problem and get the correct answer.

Revenue (10,000 visits) $409,699 Wages and benefits $226,160 Rent $5,349 Depreciation $25,568 Utilities $2,442 Medical Supplies $48,524 Administrative Supplies $10,599

Explanation / Answer

Revenue ($409,699*10,832.88/10,000) $443,822 Less Wages and benefits ($226,160) Rent ($5,349) Depreciation ( $25,568) Utilities ($2,442) Medical Supplies ($48,524* 10832.88 / 10,000) ($52,565) Administrative Supplies ($10,599 * 10,83.88/ 10,000) ($11,481) Net income before tax $120,257 Tax at 30% ($120,257 * 0.30) ($36,077) Net Income after Tax $84,179

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