You have been tasked with starting up a local clinic and developing a business plan for its operation. You are unsure if, or how long it will take for your operation to break even. Refer to cost categories in Exhibit 5.3 on page 166, develop your own cost estimates (and categories as needed) and complete the following in an Excel (or Open Office) spreadsheet :

1. Identify projected fixed costs for each category
2. Identify projected variable costs for each category
3. Identify total costs
4. Using estimated cost per visit and revenue per visit, project your breakeven point.
5. Briefly describe the merits of the project. Do the numbers make sense?

In a separate two-page Word document:

• summarize your findings
• provide your assumptions regarding the type of care provided
• explain your overall rationale