Thus, the price will be:
(220*P)-(220*25.57) - $2,250 = 220P -- 7875.4 = $35.7, so the price for the one-hour session will be $360. Given that the expected demand is 240, the income statement will be as follows:
Income Statement
Year 1
Revenue
449280
less variable costs
319113.6
Gross Margin
130166.4
less Fixed Costs
108000
Income Before taxes
22166.4
Taxes
Net Income
14408.16
The CMS website's search function is non-functional, so there does not appear to be any place to find out the reimbursement rate for this type of service. This is ok, because reimbursement rates will differ depending on the payer -- private insurers may have different rates anyway. The biggest issue is actually going to be with cash flow. All types of payers can be notoriously slow with their payments. It can take 60 or even 90 days sometimes to collect on billings, which will have an effect on...
Inability to generate profits almost immediately from the retail side will impact our ability to grow on the board side, as we will then be supporting the store with the board sales. Our plan expects the opposite. 8c) Assumptions to Income Statement. We assumed seasonality of retail/servicing revenues and calculated them on a per day basis around off/on/front shoulder/back shoulder seasons. We assumed custom board revenue will average over the year.
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