1

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

A
YOUR AUDIOLOGY PRACTICE, INC.

Operating Expenses per MONTH

Audiologist salary
Admin Assistant salary
Benefits (insurance, disability, retirement)
Utilities (heat, a/c, electricity, water, etc.)
Rent (or mortgage payment)
Accounting & Legal
Marketing
Office expenses & supplies, postage
Maintenance & calibration of equip.
Cleaning
Telephone
Travel/Education/Dues
Prof. Liability Insurance
Workers Comp
Miscellaneous
Other 1
Other 2
FICA & state payroll taxes
Medicare
Subtotal per Month

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

5,000
2,500
1,875
250
750
175
2,000
400
50
300
150
500
25
100
200
200
200
465
109
15,249

Depreciation
Interest
Total per Month

$
$
$

- Cap budget $ divided by 7 yrs divided by 12

- Cap budget $ x 8%, divided by 12
15,249

Capital (Equip.) Budget

Cap Item 1
Cap Item 2
Cap Item 3
Cap Item 4
Cap Item 5
Cap Item 6
Cap Item 7
Total Cap. Equip. Budget

263960553.xls

$0
$0
$0
$0
$0
$0
$0
$0

YEARLY TOTAL
$60,000
$30,000
$22,500
$3,000
$9,000
$2,100
$24,000
$4,800
$600
$3,600
$1,800
$6,000
$300
$1,200
$2,400
$2,400
$2,400
6.2% of wages
1.45% of wages
$182,985

Column B is where you enter the

OPERATING EXPENSES for your
practice. Column C takes your inputs in
Column B and multiplies them by 12 to
come up with a full year of Operating
Expenses.

If you bought equipment in lines 30 thru 36, lines 25 and 26 are an

estimate of the interest cost and depreciation impact of those purchases.
We have used a 7 year useful life for depreciation and an 8% interest
rate for debt cost. If you want to edit these settings, you can in cells B25
& B26.
NOTE: This does not take into account repayment of the principal
amount of the debt, which is not an income statement item, BUT DOES
impact cashflow. This was judged to be outside the scope of the class
for which this was developed.

If you need to buy equipment for your practice, enter the costs in Column B in
rows 30 thru 36. You can overwrite the titles in Column A to describe the item
you are purchasing.
If you need to buy equipment, you will need to research costs for new & used
equipment.

Operating Exp

03/18/2015

A
B
C
D
E
F
G
H
I
J
K
L
YOUR
1 AUDIOLOGY PRACTICE, INC.
2
Use the 10 columns to set up the
PRICES & COSTS for various
3
diagnostic procedures or hearing aids
4
you will provide. Make entries in the
red cells.
5
6
7
Diagnostics - Private Pay
Diagnostics - Medicare/Medicaid
Hearing Aids
8
Hear. Test
ABR
VNG Hear. Test
ABR
VNG
Medicaid Entry level
Mid Level
Premium
9
$80
$134
$500
$30
$50
$200
$1,000
$1,300
$1,800
$2,300
10 Collected Amount
$650
$650
$900
$1,350
11 Variable Cost of Sales
$5
$15
$15
$5
$15
$15
$20
$20
$20
$20
12 Variable Expenses
$75
$119
$485
$25
$35
$185
$330
$630
$880
$930
13 Gross Profit
14
93.8%
88.8%
97.0%
83.3%
70.0%
92.5%
33.0%
48.5%
48.9%
40.4%
15 Contribution Ratio
16
17
100
75
35
360
140
120
95
33
0
0
18 VOLUMES
19
$8,000
$10,050
$17,500
$10,800
$7,000
$24,000
$95,000
$42,900
$0
$0
20 SALES
$0
$0
$0
$0
$0
$0
$61,750
$21,450
$0
$0
21 Variable Cost of Sales
$500
$1,125
$525
$1,800
$2,100
$1,800
$1,900
$660
$0
$0
22 Variable Expenses
$7,500
$8,925
$16,975
$9,000
$4,900
$22,200
$31,350
$20,790
$0
$0
23 Gross profit
24
25 Operating Expenses
26 Profit before taxes
Use the 10 columns on line 18 to
27
set the VOLUMES of the
Operating Expenses are pulled into
diagnostic procedures or hearing
28 Income Tax @ 35%
cell M25 from the amounts you fill
aids you will provide. Make entries
29 Profit After Taxes
in on the Operating Exp Tab.
in the red cells.
30
31
32 ASSUMPTIONS
33 Tax @ 35% doesn't include state taxation
34 Consult an accountant or tax professional
35
36 Hours Spent per Procedure/Aid
1.0 Hrs
1.5 Hrs
1.5 Hrs
1.0 Hrs
1.5 Hrs
1.5 Hrs
3.0 Hrs
3.0 Hrs
3.0 Hrs
3.0 Hrs
37 Time per Item
38
100.0 Hrs
112.5 Hrs
52.5 Hrs
360.0 Hrs
210.0 Hrs
180.0 Hrs
285.0 Hrs
99.0 Hrs
0.0 Hrs
0.0 Hrs
39 Total Time
40
Use the 10 columns on line 37 to set the TIME per ITEM
We use an assumption of 48 weeks in a year, for 6 hours each day and 5 days a
41
of the diagnostic procedure or hearing aids you will
week to set a limit on hours available to sell hearing aids or perform diagnostiocs.
42
provide. Make entries in the red cells. This is a custom
This constraint prevents an analysis which merely dials up volumes without
format,
so
all
you
need
to
enter
is
a
number
(example:
1
or
regard for the paperwork and administrative duties that come with increased
43
1.5) and it will automatically fill in "Hrs" after
volume. You can change this if you wish. Regardless of what # of hours you
44
use, if the total time of the procedures in columns B thru K exceeds our limit, cell
45
M41 will display "TOO MANY HOURS"
46
47
48
263960553.xls

Multiple Products

ANNUAL
TOTALS
958
$215,250
$83,200 Contribution
$10,410
Ratio
$121,640
56.5%
$182,985
($61,345)
$0
($61,345)

1399.0 Hrs
Max Hours
1440.0 Hrs

03/18/2015

A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Input your BASELINE

BUDGET into the red
cells. This will calculate
your Operating Profit

B
C
D
E
YOUR AUDIOLOGY PRACTICE, INC.
Unit Volume
BASELINE
Breakeven
BUDGET
Analysis

Sales Price
Breakeven
Analysis

Variable Cost
Breakeven
Analysis

J
Op. Profit
$15,000
Volume
Calculator

L
Op. Profit
$15,000
Sales Price
Calculator

Unit A
$1,200
$750
$20
$430

Unit A
$1,200
$750
$20
$430

Unit A
$1,247
$750
$20
$477

Unit A
$1,200
$703.00
$20
$477

Unit A
$1,200
$750
$20
$430

Unit A
$1,306
$750
$20
$536

35.8%

35.8%

38.3%

39.8%

35.8%

41.0%

VOLUME (# of units)

252

280

252

252

314

252

SALES
Variable Cost of Sales
Variable Expenses
Contribution

$302,400
$189,000
$5,040
$108,360

$336,000
$210,000
$5,600
$120,400

$314,244
$189,000
$5,040
$120,204

$302,400
$177,156
$5,040
$120,204

$376,800
$235,500
$6,280
$135,020

$329,112
$189,000
$5,040
$135,072

Fixed Expenses
Operating Profit

$120,000
($11,640)

$120,000
$400

$120,000
$204

$120,000
$204

$120,000
$15,020

$120,000
$15,072

Interest
Income Tax @ 35%
Net Profit After Tax
Dividends
Retained Earnings

$0
$0
($11,640)
$0
($11,640)

$0
$140
$260
$0
$260

$0
$71
$133
$0
$133

$0
$71
$133
$0
$133

$0
$5,257
$9,763
$0
$9,763

$0
$5,275
$9,797
$0
$9,797

Sale Price
Variable Cost of Sales
Variable Expenses
Contribution
Contribution Ratio

Take all of your assumptions

(red cells) from the Baseline
Budget,
Enter them into Column D to
calculate your BREAKEVEN
VOLUME, shown in cell D14.

Use your assumptions (red

cells) from the Baseline
Budget, and enter them into
Column F to calculate your
BREAKEVEN SALES
PRICE in cell F6.

Use your assumptions (red

cells) from the Baseline
Budget, and enter them into
Column H to calculate your
BREAKEVEN VARIABLE
COST of SALES in H7

In Column J, enter your

target Operating Profit in Cell
J2, then the rest of your
assumptions from the
budget. This will calculate
the VOLUME (in J14) you
need to sell to achieve your
target Op. Profit

In Column L, enter your

target Operating Profit in
Cell L2, then the rest of your
assumptions from the
budget. This will calculate
the SALES PRICE (in L6)
needed to achieve your
target Op. Profit

ASSUMPTIONS
Income tax @ 35% doesn't include state taxation
Consult an accountant or tax professional
263960553.xls

Single Product

03/18/2015