What are the projected revenues, expenses, and profits or losses of the urgent-care center if volume continues at the current level? That is, construct a pro forma operating statement using the historical data provided to project into the future. Then project that into the future in 2023; that is, what would this pro forma look like if costs increased at 2 percent and revenues 5 percent per year (that is, five years from now)? [Note: To compound inflation, raise your inflation factor to the exponent 5].
How many visits per day are required for breakeven operations without a new marketing program? How does this relate to the current volume?
Now, assume the incremental costs are added to increase volume. Use the data from the incremental monthly cost section. Use the spreadsheet model to estimate how it changes the additional visits-per-day necessary.
What happens to breakeven with the new marketing program? Use the spreadsheet to assist you in your analysis.
For the live session, prepare a list of the areas that cause you concern. What is uncertain?
