A clinic has the fixed and variable costs shown below. A health maintenance organization offers to send 500 patients per year but only offers to pay $300 for each one. Should the clinic agree to this arrangement? It currently has 2,500 patients per year and can easily handle 3,000.

  Variable Cost Per Patient  Fixed Costs Per Year

Personnel                        $150                               Rent              $100,000

Supplies                            20                            Administrative    120,000

Laundry                            30                                   Other                80,000

Other                                50