Option #1: Breakeven Executive Summary

Your submission should be an executive memo addressing
problem 5.8 on page 152 of our text.
The organization’s vice president has asked you to determine the
breakeven point of a new walk-in clinic that they are proposing. In
your memo you should:
• Explain the importance of the breakeven point.
• Explain how to determine breakeven point numbers.
• Explain the breakeven point for this problem and explain.
• Explain the breakeven point to make a profit one hundred
thousand dollars.
• Recommend whether you should accept the project.
• Provide actual calculations of three questions for this
problem.
Requirements:
• Executive Summary of at least 2 pages (excluding title and
reference slides),
• Formatted according to the CSU-Global Guide to Writing and
APA (Links to an external site.)
.
• Include a minimum of two (2) credible, academic references.
• Be sure to discuss and reference concepts taken from the
assigned textbook reading and relevant research.
• Review the grading rubric to see how you will be graded for
this assignment.
“5.8You 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.
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 aftertax profit of $100,000? “