Question: Winter Park Clinic has the fixed and variable costs shown below. A health maintenance organization (HMO) offers to send Winter Park 500 patients per year

Winter Park Clinic has the fixed and variable costs shown below. A health maintenance organization (HMO) offers to send Winter Park 500 patients per year but only offers to pay $300 for each one. Should Winter Park agree to this arrangement? If currently has 2,500 patients per year and can easily handle 3,000. Show how this can be calculated in Excel.

Variable Costs per Patient		Fixed Costs per Year
Personnel	$150	Rent	$100,000
Supplies	20	Administration	120,000
Laundry	30	Other	80,000
Other	50

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