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The sesame clinic of Ohio plans to start a new pain management service in the coming year. They have calculated the Average Cost of providing

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The sesame clinic of Ohio plans to start a new pain management service in the coming year. They have calculated the Average Cost of providing this service at $40 patient, and the Margini Cost of providing this service at $10/patient. If they see 100 patients in the coming year and generate an average of $20 for each patient visit, what is likely to happen to the clinic's overall net profits? Income Statement For Year Ending Jul 30, 2021 Net Sales Prescription Sales Non-prescription Sales Total Sales (net) $5,500,000 $1,500,000 $7,000,000 Cost of Goods Sold Prescription Non-prescription Total COGS $4,400,000 1,000,000 $5,400,000 Gross Margin $1,600,000 Expenses Manager's salary & benefits $180,000 Pharmacist's salaries & benefits $320,000 Technician's salaries & benefits $200,000 Other Employees wages & benefits $140,000 Rent ($10,000/month) $120,000 $150,000 Utilities $50,000 Telephone $20,000 Promotional $100,000 Professional (Licenses, Dues, Travel) $20,000 Pharmacist Malpractice Insurance $10,000 Maintenance & Repairs $30,000 Store Liability Insurance $40,000 Pharmacy Computer $30,000 Depreciation (fixtures) $50,000 Rx Labels and Containers $50,000 Miscellaneous $50,000 Total Expenses $1,410,000 Net Profit $190,000 Pharmacy Balance Shec. Jul 30, 2021 I $25,000 $500,000 Assets Current Assets Cash Accounts Receivable Inventories Prescription Non-prescription Total Inventory Total Current Assets $350,000 $125.000 $475,000 $1,000,000 Fixed Assets (less depreciation) Equipment Fixtures Total Fixed Assets $150,000 $150.000 $300,000 Other Assets Prepaid Expenses, Deposits, etc. $200,000 $1,500,000 Total Assets Liabilities Current Liabilities Accounts Payable Notes Payable (within 1 year) Accrued Debts and Other Liabilities Total Current Liabilities $500,000 $50,000 $50,000 $600,000 Long-term Liabilities Notes Payable (later than 1 year) $150,000 $750,000 Total Liabilities Net Worth $750,000

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