Break Even Analysis

Monthly Expenses for Proposed Medical Facility

Fixed Expenses
Advertising	$ 2,000
Rent/Utilities	1,500
Legal/Accounting	500
Manager Salary	2,000
Staff Salaries	8,000
Physician Salaries	10,000
Postage	200
Security/housekeeping	250
Telephone	250
Depreciation	1,100
Sundry	1,200
Total Fixed Expenses	$27,000
Variable Expenses
Malpractice Insurance	$ .70 per patient
Supplies	4.60 per patient
Total Variable Expenses	$ 5.30 per patient

Estimated monthly fixed operating expenses are $ 27,000. The average patient charge is estimated at $ 40.00 per patient. Each patient will earn us $ 34.70 ( $40.00 minus $ 5.30 variable expenses). Therefore a total of 778 patients visits per month will be required to break even ( $ 27,000/ $34.70 ).

Note: This estimate does not include financing cost for such things as start-up cost, capital investment, and other initial cost.