Question

Review the walk-in data presented below. Taxes are assumed to be 30%.

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

Construct a projected P&L statements at volume levels of 10,000 units. What would be the total fixed costs for a volume of 10,000 units?  

Answer 1

The total fixed costs for a volume of 10,000 units

	Amount ($)	Amount ($)
Revenue (10,000 Visits x $40 per visit)		4,00,000
Variable Costs
Medical Supplies	50,000
Administrative Supplies	10,000	60,000
Fixed Costs
Wages and Benefits	2,20,000
Rent	5,000
Depreciation	30,000
Utilities	2,500	2,57,500
Taxable Income		82,500
Less: Tax at 30%		24,750
Net Income		57,750

Therefore, the total fixed costs for a volume of 10,000 units = $257,500