Jamestown Clinic as the following fixed and variable costs: Variable costs: Costs which change with the change in volume. [Cost per patient x No. of patients]. Fixed costs: Costs which are does not change with change in volume. They are fixed irrespective of the change in volume. Total costs = Variable costs + Fixed costs 2. An outside organization such as a health maintenance organization, offers to send Jamestown 500 patients per year but offers to pay only $300 for each one. Should Jamestown agree to this arrangement? It currently has 2,500 patients per year but can easily handle 3,000. Make sure to justify your decision with calculations (a simple yes or no will not be accepted)