Hong Kong Health Consultants Company provided dietary service to clients by offering consultation with specialist staff.

The budgeting information for the year 2019 is as follows:

	Dietary	Company
Service fee charged to client	$750 per consultation
Cost of dietary material*	$60 per consultation
Fixed annual salary	$300,000 per consultant
Variable cost per enquiry#		$15 per enquiry
Commission to staff		$20 per consultation
Dietary fixed costs	$540,000 for a year
Other fixed corporate costs		$1,000,000 for a year

*Assume all client of dietary will be given a pack of dietary material each consultation. # All enquiries are handled by the companys trained staff who is paid $15 per enquiry.

Only a small portion of enquiry will turn up for a charged consultation.

Actual results for the year 2019 incorporate the following additional information:

1. The company offered 8% discount of service fee charged to all clients during 2019.

2. The cost of dietary materials increased to $65 per consultation.

3. The actual salary of full-time consultants was lowered than the budget because three experienced consultants had left the company since beginning of the year. Each full- time consultant is planned to consult 1,500 clients per year.

4. The company can take part-time consultants at a cost of $260 per consultation to handle increasing demand. A total of 4,950 consultations were carried out by the part- time consultants in 2019.

5. Dietary fixed costs were increased by $80,000 per year through the hire of equipment to provide additional service to clients free of charge.

6. The actual corporate costs increased because a new computer software has been installed to provide detailed health records and scheduling of all client. The operating cost is $50,000 per year.

Appendix

Statistics relating to the year of 2019 is provided below:

	Budget	Actual
Total client enquiries:
New clients	30,000	44,000
Repeat clients	20,000	16,000
Total	50,000	60,000
Number of charged consultations:
New clients	8,000	10,800
Repeat clients	10,000	9,000
Total	18,000	19,800
Number of consultants employed:	12	9
Number of client complaints:	180	495

Evaluate the overall performance of the business by proceeding analysis on the following dimensions. Give four measures to each dimension and explain briefly.

1. Profitability
2. Quality of service