Problem $4$:

Hospital for Homeless has the following cost structure:

Variable Cost

Fixed Costs

Personnel

$$175$

Rent

$$100,000$

Supplies

$$20$

Administration

$$140,000$

Laundry

$$30$

Other

$$60,000$

Other

$$50$

Total Fixed Costs

$$300,000$

Total VC$/$Patient

$$275$

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

Question $2$: Create a graph for each of the previously mention costs. Cost should be on vertical axis and number of patient on horizontal.

Question $3$: An outside organization offers to send HH $500$ patient per year and offers to pay $$300$ per patient. Should the hospital agree to the arrangement? It can easily handle additional patients.