SEO packages for the website submission
Posted on May 25, 2009 - Filed Under Finance | 4 Comments
If you want be successful in online business so you should have amazing and wonderful website to support your business. But, if you can’t make it you can ask for a help from the expert. You have to consider that graphic design of your site determining the level of browsers interest. The more interesting the […]
Read More..>>Operating Leverage (4)
Posted on May 24, 2009 - Filed Under Finance | 3 Comments
To illustrate the negative effect of a high DOL, consider this question: What would happen to Atlanta Clinic’s profit if volume falls by 7.8 percent from the base case level of 75,000 visits? To answer this question, recognize that profit would decline by 7.8% × 12.85 ? 100%, so the clinic’s profit would fall to […]
Read More..>>Operating Leverage (3)
Posted on May 21, 2009 - Filed Under Finance | 3 Comments
Operating leverage is measured by the degree of operating leverage (DOL), which at any volume is calculated by dividing the total contribution margin by earnings before interest and taxes (EBIT), which for not-for-profit businesses is merely profit plus any interest expense. At a volume of 75,000 visits, Atlanta Clinic’s degree of operating leverage is $5,386,500 […]
Read More..>>Operating Leverage (2)
Posted on May 18, 2009 - Filed Under Finance | 4 Comments
The movement from 75,000 to 82,500 visits resulted in a (82,500 ? 75,000) / 75,000 = 7,500 / 75,000 = 0.10 = 10% increase in volume and thus total revenues. While the top line of the P&L statement—
total revenues—increased by 10 percent, the bottom line of the statement— profit—increased by 128.5 percent ($538,650 / $419,038 […]
Operating Leverage
Posted on May 15, 2009 - Filed Under Finance | 1 Comment
The change in our analysis from 75,000 visits to 69,165 visits was quite easy. In fact, the analysis could be entered on a spreadsheet and the results could be quickly examined at any given volume. This way, “what if” questions could be answered about the impact on profit of changing volume, costs, or prices. To
illustrate, […]
Breakeven Analysis (4)
Posted on May 12, 2009 - Filed Under Finance | 2 Comments
This breakeven analysis contains important assumptions. The first assumption is that the price or set of prices for different types of patients and different payers is independent of volume. In other words, volume increases are not attained by lowering prices, and price increases are not met with volume declines. The second assumption is that costs […]
Read More..>>Breakeven Analysis (3)
Posted on May 9, 2009 - Filed Under Finance | Leave a Comment
The relationship between breakeven analysis and the projected P&L statement is important to understand. Based on the clinic’s base case projection of 75,000 visits, it can anticipate a profit of $419,038. However, management may worry that the clinic will not achieve this projected volume and ask the following question: What is the minimum number of […]
Read More..>>CUSTOM WRITING MIGHT BE THE SAVIOR
Posted on May 9, 2009 - Filed Under Finance | Leave a Comment
Back to three years ago when I was in first year in collage, as freshmen in collage I had difficult time to adjust the busy schedule of college student. Every day I had to deal with many assignments and most of them are the term papers writings. You probably can imagine it because I am […]
Read More..>>Breakeven Analysis (2)
Posted on May 6, 2009 - Filed Under Finance | 1 Comment
The economic logic behind the breakeven point is this: Each patient visit brings in $100, of which $28.18 is the variable cost to treat the patient. This leaves a $71.82 contribution margin from each visit. If the clinic sets the contribution margin aside for the first 69,165 visits in 2005, it would have $4,967,430, which […]
Read More..>>Breakeven Analysis
Posted on May 3, 2009 - Filed Under Finance | 1 Comment
Breakeven analysis is applied in many different situations, so it is necessary to understand the context to fully understand the meaning of the term break even. Generically, breakeven analyses are used to determine a breakeven point, which is the value of a given input variable that produces some minimum
desired result. In the specific situation at […]
