Given the above assumption, the company's yearly break-even point can be computed as follows:
The implication of the above computation is that LNS must service at least 33 clients per year in order to break even.
Projected Profit & Loss
LNS's projected Profit and loss, based on information from the previous section and on data from sales forecast on table 3 is presented on table 4. From the information on table 4, it can be seen that LNS's business will be a lucrative one.
Table 4 -- Projected Profit & Loss Data
2011
2012
2013
2014
2015
1. Sales ($)
660,000
900,000
1,140,000
1,440,000
1,452,000
2. Total Expenses (Operating costs, staff remuneration, tax, and so on)
778,000
809,000
810,000
809,000
812,000
NET PROFIT
118,000
91,000
330,000
631,000
640,000
Evaluation plan
LNS's operations will be considered successful when the following situation occurs:
1. LNS's service acceptance rate increases by at least 40%;
2. The company's revenue and market share increases by 50% within the third year of operation;
3. The company's profit increases by at least 20% every year;
4. The company's return on investment (ROI) becomes at least 20% every year.
Conclusion
The demand for the services of LNS will continue to grow in the United States due to the ongoing dependence of U.S. attorneys on legal nurse consulting services. This assertion is simply a reflection of the fact that most attorneys are not well-informed about how to properly read and interpret...
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