Wk 6, MHA 506: Market Estimation and Pro-forma Income Statement

Assignment Content

Market demand is a central concept in health care economics. In addition, calculation of projected income is required to determine the impact of organization finances on the marketing plan. This week you will prepare a pro forma income statement for the new or revised existing product or service you recommended in your Marketing Mix Strategy in Week 5 for East Chestnut Regional Health System.

Review the Case Study document. (Attached)

Pro Forma Income Statement for East Chestnut Regional Health:

Complete the following prior to preparing the pro forma income statement and budget. You will need the following information in order to prepare it.

Part I: Market size calculation:

Determine the size of the market for the ECRHS product or service you are recommending. Assume East Chestnut Regional Health is located in the market in which you live or work.

Visit the University Library Consumer Demographics page. For Texas (https://data.census.gov/cedsci/all?q=texas)

From this page, visit the United States Census Bureau sites linked under the heading Demographic Data. A rough estimate of need for health care products or services can be made based on the population demographics, using age, gender, and in some cases, race. On these sites, you can gain information on the total U.S. market for health care, as well as the number of U.S. consumers who fit your target market segmentation.

Determine the local market for the product or service you recommend for East Chestnut Regional Health.

Next, multiply the percentage of people likely to purchase your recommended ECRHS product or service by the estimate of market share you believe ECRHS can achieve for the product or service. For example, if there are 6,000 women who might be interested in ECRHS obstetrical services, and ECRHS has a potential 40% market share, this results in 2,400 patients.

Prepare a 150- to 300-word summary of your market determination process.

Part II: Breakeven Analysis:

A breakeven analysis determines the number of products or amount of service that must be sold to consumers for the organization to break even or cover the costs of production or provision of the product or service.

You will prepare a breakeven analysis for the Case Study client, East Chestnut Regional Health.

Use the Breakeven Analysis Worksheet to prepare your analysis. (Attached)

Prepare a 150- to 300-word summary of your breakeven analysis that includes the following:

The fixed and variable costs of product production or service provision
The price and number of units sold at that price
The number of units of product or service sold to cover the fixed and variable costs at the price level.

Part III: Pro Forma Income Statement:

A Pro Forma is an income statement that predicts income for your new or revised product or service you are recommending to East Chestnut Regional Health System (ECRHS) after one year. It shows the sales ECRHS expects to achieve during that period of time, along with the costs associated with that level of sales. The organization must cover the costs of products or services it delivers (Cost of Goods Sold) and the expenses we estimate to achieve those sales (salaries for sales reps, advertising, promotion, and office expenses, etc.). This will leave us with a projected profit.

A good Pro Forma Income Statement proves out a strategy by showing the expected revenue minus the expected costs and the resulting profit. Conversely, it shows that you can't have $100,000 in forecast sales and $3 million in projected advertising, since that would result in a loss.

Use the Pro-forma Income Statement Worksheet to create your Pro Formal Income Statement. (Attached)

Create a pro forma income statement based on the above. Include the following for 1 year:

Projected sales volume in units and revenue
Projected costs of goods/services
Projected marketing expenses
Projected net income

Prepare a 500-word summary statement of your Pro Forma Income Statement for East Chestnut Regional Health System for the new or revised existing product or service you have recommended. Include the following:

Summary of Market Size Calculation (150 words)
Summary of Breakeven Analysis (150 words)
Summary of Projected Profit (200 words)

Part IV: Marketing Plan Considerations:

Now that you have a better understanding of your market and the finances of the organization, you must consider how economics and finances can affect your marketing strategy.

Write a 350- to 500-word analysis of how specific economic or financial issues will affect the marketing strategies for ECRHS.

Try it now!

Get 20% Discount on This Paper

Type of paper needed:

Pages:

Academic level:

We'll send you the first draft for approval by at

Total price:

$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Ace Writing Center has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Ace Writing Center, Nowadays, students normally have extremely busy schedules. You will note that some of them have to take on some evening or weekend jobs in order to get some income that can help them to sustain in college or in the university. This can deny them a chance to write all the essays given. Others usually get bombarded with a lot of work by their lecturers. This can still delay such students from working on all their essays. However, some of them usually try to work on all these essays but end up delivering their work late. This can prevent them from graduating since most lecturers are strict on deadlines. If you want to write a business essay, the wise way is to hire an outstanding essay writing service like us, so that you can get the best results. If you are keen, you will note that many companies usually overcharge their customers. Some of them are there only to make money. And in reality, they really don’t care to build a long term commitment with students. You should not choose such companies. You should take your time and choose a reliable company to work with. Ace Writing Center is the ultimate solution for you. We have been offering our writing service for more than 7 years. This is a clear indication that you will get quality essay writing service. We have a wide range of writers who can work on any business essay that you might have. We believe in doing extensive research so that we can provide quality work to all our clients. .

Admissions

Admission and Business Papers

Have you ever had to write an admission essay for college? The majority of students face the same issues when applying to a university or college and many in such situations decide they need professional help to cope with this matter. They get in a situation when the deadline keeps coming closer but lack motivation to start because they are just not sure if their writing skills are strong enough. We have a solution for you! Ace Writing Center is the best admission essay writing service with a large professional team and years of experience in providing high-quality papers to students of all levels and faculties. The mission of our team is to help students make their dreams of entering a good college come true and that’s what we offer!.

Editing

Editing and Proofreading

Sometimes all the words for your paper just flow out of your mind and into your fingers. You type quickly at your keyboard and there they are, your beautiful words right there on the screen. But you have no idea how to polish it up. You may be wishing there was a paper writing service that offered this type of writing service. Look no more! Here at Ace Writing Center, we offer you an editing and proofreading option that you can't find anywhere else..

Coursework

College Essay Writing

In case you are familiar Ace Writing Center, you know the way to distinguish a better company from a cheap one exactly. First of all, poor service website does not have a sufficient support. We think support team is an essential part of success; it has to answer all clients’ questions and be a connecting link between clients and their writers. On our web-service you will get answers about anything you need and your writer will receive all your instructions, assignments and requirements exactly and swiftly. A writing service that we run has got a flexible pricing system that will save you from senseless wastes and many bonus systems that let you sparing money for something important for you.