BizQuiz: Where does the money go? (Answer 4b)
After subtracting out wages ($450,000), the cost of drugs and supplies ($180,000), and a fair return to the owner ($100,000), the practice is left with $270,000 to pay the clinic's overhead expenses. This equals $900 per day in overhead expenses. In other words, every day that the practice opens its doors, it starts out $900 in the hole.