Final answer:
The break-even point for the walk-in clinic, without considering taxes, is approximately 7,598 visits. This is calculated by determining the total fixed costs and dividing that by the contribution margin per visit.
Step-by-step explanation:
To determine the number of visits required to break even for the walk-in clinic, we need to calculate the total fixed costs and the contribution margin per visit. Fixed costs include wages and benefits, rent, depreciation, utilities, and administrative supplies. Variable costs include medical supplies that vary with the number of visits.
Step 1: Calculate Total Fixed Costs
Total fixed costs are the sum of all costs that do not vary with the number of visits. This includes:
Wages and benefits: $231,339
Rent: $4,667
Depreciation: $27,506
Utilities: $2,046
Administrative supplies: $9,974
Total Fixed Costs = $231,339 + $4,667 + $27,506 + $2,046 + $9,974 = $275,532
Step 2: Calculate the Contribution Margin per Visit
The contribution margin per visit is the revenue per visit minus the variable cost per visit. Assuming medical supplies are the only variable cost:
Revenue per visit: $413,315 / 10,000 visits = $41.33 per visit
Variable cost (medical supplies) per visit: $50,699 / 10,000 visits = $5.07 per visit
Contribution Margin per Visit = Revenue per Visit - Variable Cost per Visit = $41.33 - $5.07 = $36.26
Step 3: Calculate Break-Even Point in Visits
The break-even point in visits is the total fixed costs divided by the contribution margin per visit. To find this:
Break-Even Point in Visits = Total Fixed Costs / Contribution Margin per Visit = $275,532 / $36.26 ≈ 7,598 visits
This calculation provides the number of visits required to cover all fixed and variable costs before taxation. Since the question asks for the break-even point without requesting to account for taxes, we will not deduct the tax expense in this calculation.