Please explain thoroughly the answer... thanks!

INPUT DATA:

Historical Financial Data:

Monthly Averages

CY 2009

Jan 2010

Feb 2010

2009

Jan/Feb10

Combined

Number of visits

14,522

1,365

1,335

1,210

1,350

1,230

Net revenue

$548,747

$55,028

$54,748

$45,729

$54,888

$47,037

Salaries and wages

$154,250

$13,540

$13,544

$12,854

$13,542

$12,952

Physicians fees

192,000

18,000

18,000

16,000

18,000

16,286

Malpractice insurance

31,440

3,215

3,215

2,620

3,215

2,705

Travel and education

5,365

538

665

447

602

469

General insurance

8,112

843

843

676

843

700

Subscriptions

189

0

0

16

0

14

Electricity

11,820

1,124

1,029

985

1,077

998

Water

1,260

135

142

105

139

110

Equipment rental

1,260

105

105

105

105

105

Building lease

155,745

12,500

12,500

12,979

12,500

12,910

Other operating expenses

103,779

8,152

7,923

8,648

8,038

8,561

Total operating expenses

$665,220

$58,152

$57,966

$55,435

$58,059

$55,810

Net profit (loss)

($116,473)

($3,124)

($3,218)

($9,706)

($3,171)

($8,773)

Gross margin (%)

-21.2%

-5.7%

-5.9%

-21.2%

-5.8%

-18.7%

Incremental Monthly Costs:
				Number of Additional Visits per Day
				0	1-10	11-20	21-30	31-40
Variable costs:
Medical supplies					$3.00	per visit
Administrative supplies					0.50	per visit
Total variable costs per visit					$3.50	per visit
Semifixed costs:
Salaries and wages					$4,000	$5,000	$6,000	$7,000
Physician fees					10,000	10,000	10,000	20,000
Total monthly semifixed costs				$0	$14,000	$15,000	$16,000	$27,000
Fixed costs:
Marketing assistant's salary				$3,000	$3,000	$3,000	$3,000	$3,000
Advertising expenses				4,000	4,000	4,000	4,000	4,000
Total monthly fixed costs				$7,000	$7,000	$7,000	$7,000	$7,000

Questions:

1. What is the projected profitability of the walk-in clinic for the entire year if volume continues at its current level?

2. How many additional visits per day would be required to break even without the new marketing program?

3. How many additional visits per day would be required to break even assuming that the new marketing program is undertaken?

4. How many additional daily visits would the new program have t bring in to make it worthwhile, regardless of the overall profitability of the clinic?