Question
health Clinic is a newly established aurotherapy clinic. The owner has drawn up an initial business model for the clinic. According to the model: He
health Clinic is a newly established aurotherapy clinic. The owner has drawn up an initial business model for the clinic. According to the model: He plans to offer 3,000 occasions of service (OOS) in the year 2033 to the community. The service fee he charges per OOS is $85. The variable cost per OOS is $40 and mainly consists of the independent contractor rates paid to the Physiotherapist he hired. The fixed costs for the clinic are: o Rent o Utilities o Maintenance o Administration o Marketing $25,000 $10,000 $12,000 $15,000 $ 5,000 The owner has hired you as a consultant to verify his business model.
Question. Develop a graph that shows the break-even point and advise whether this model is viable or not. why?
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