Jakob Loos recently graduated from medical school. He is considering opening his own family practice doctor office. A doctor's office is a high-fixed cost business, as it requires considerable expenditures for facilities, labor, and equipment, no matter how many families are served. Assume the annual fixed cost of operations is $400,000. Further assume that the only significant variable cost relates to patients served. An average patient served costs $250. Jakobs banker has asked a variety of questions in contemplation of providing a loan for this business a) If the average family is charged $475 for services, how many families must be served to clear b) If the banker believes Jakob will only serve 1,000 families during the first year in business, c) If Jakob believes his profits will be at least $100,000 during the first year, how much is he d) The banker has suggested that Jakob can reduce his fixed costs by $100,000 if he will not the break-even point? how much will the business lose during its first year of operation? anticipating for total revenue? purchase certain equipment. Jakob can instead lease or rent this equipment as needed. The variable cost of leasing this equipment is $55 per family served. Will this suggestion help Jakob reach the break-even point sooner? Worksheet2 a) Break-Even Point in Patients b) c) Sales for a Target Income d) New Break-Even Point in Patients