PLEASE SHOW ALL WORK Review the walkin data below Taxes are

PLEASE SHOW ALL WORK

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

Projections for first year of opearation

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 8,000 units. What would be the total revenues for this projected volume of 8,000 units?

A: $100,000

B: $320,000

C: $280,000

D: $300,000

Solution

Here we consider each visit as a unit

For 10,000 Units, the revenue generated = 400,000

So for 1 unit, revenue generated = 400,000/10,000 = $40

For 8000 units, revenue generated = 8,000*40 = $320,000

Revenue generated for 8,000 units is $320,000 (Option B)