Better Care Clinic Solution Outline
Introduction about the case while giving its overview
Explanation of the usefulness of Pro forma Profit and Loss Statement
Solution of individual questions beginning with 1 up to 3
Accurate answers given based on the question asked.
Running Head: BETTER CARE CLINIC
Better Care Clinic Solution
BETTER CARE CLINIC
1. Construction of a pro forma profit and loss statement for the clinic’s average day for all
of 2013 assuming the status quo. Determination whether the clinic will make a profit.
Overview of the Case
The major purpose of the case study is to come up with a break-even analysis for the
Better Care Clinic.
The outcome of the break-even analysis will help in making decisions for the clinic.
The conclusion of the case study analysis will be about the clinic being closed or it is
left to operate as it currently is operating (Wrolstad et al, 2016).
The number of visits in the clinic = 45
Pro forma Profit and Loss Statement
The projected profit and loss statement will show the net income of the clinic
while working with the base case assumptions.
The statement will be adopted in decision making for the clinic (Wrolstad et al,
The projected profit with the price of each patient being $130 (average)
The Total Revenue: = (Number of visits x 30 x price per patient) = 30 x 45 x $130= $ 175,500
Total Variable costs: = (total variable cost per visit x number of visits) = 30 x 5 x 45 = $ 6,750
Total Contribution Margin: ((Price per p...
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