Question: 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


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

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. Variable Costs (VC) per Patient Fixed Costs per Year Personnel $150 Rent $100,000 Supplies Laundry 20 20 Administration 120,000 30 Other 80,000 Other 50 Total VC/Patient $250 Total Fixed $300,000

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