James Town Clinic (JTC) had the following fixed and variable costs: 1. What are the fixed, variable, total, and average costs per patient for volumes of 100, 500, 1,500, 2,500, and 3,000? 2. Draw a...

James Town Clinic (JTC) had the following fixed and variable costs:

1. What are the fixed, variable, total, and average costs per patient for volumes of 100, 500, 1,500, 2,500, and 3,000?

2. Draw a graph of the average cost per patient. Plot cost on the vertical axis and the number of patients on the horizontal axis.

3. An outside organization, such as a health maintenance organization, offers to send JTC 500 patients per year but offers to pay only $300 for each one. Should JTC agree to this arrangement?

It currently has 2,500 patients per year and can easily handle 3,000.