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You are interviewing for a new position as an administrator for a Brooklyn-based community based healthcare clinic. You are given the following scenario to complete as part of the job interview processcompetitive position, so you must show your prospective employer that you have the analytical and excel skills to be selected for this position.Assume that all costs are fixed, except administrative and medical 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 profit of $100,500?d. Now assume the Clinic contracts with one HMO, which proposes as 25% discount from charges on 35% of its patients.Comparing BOTH accepting AND rejecting the contract, what would you advise your prospective employer? YOU HAVEBEEN ASKED TO SHOW PROFIT AND LOSS STATEMENTS FOR BOTH SCENARIOS, INCLUDING CONTRIBUTION MARGINS!The clinic’s financial projections and assumptions for the first year of operations are as follows:Revenues (12,500 visits)$525,000Wages and benefits$225,000Rent$6,000Depreciation$30,000Utilities$2,500Medical supplies$52,000Administrative supplies$12,000Number of visits12,500Per visit Revenue$42.00
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