Richardson Health Plan is a nonprofit, full-service health maintenance organization operating in a tri-county region of a Midwestern state. Richardson is considering the development of a new satellite health center to serve a growing suburban area in ts service region. Consideration of the new facility has been stimulated by discussions between Richardson and Capital Two Industries. Capital Two is a growing electronics company with a new plant in the suburban area where the health center would be located. Capital Two Industries has proposed contracting with the Richardson Health Plan to offer comprehensive health services for its employees on an annual capitated payment basis. The capitated HMO plan would be offered as one of two health insurance options to Capital Two's 2,500 employees Financial officers of Richardson Health Plan have estimated the costs associated with the new health center as follows: Rent per year Fixed operating expenses per year Variable operating costs per enrollee per year S230,000 $370,000 Supplies and materials Clinical staff costs Support services Contract services $150 $760 $180 $480 $1,570 Total variable costs per enrollee per year In preliminary negotiations, Capital Two has proposed contracting with Richardson at an annual capitated payment of S1,800 per enrollee in the HMO. Capital Two's vice president for human resources has conducted an employee survey, and she estimates that initial annual enrollment would be 1,500 (employees and dependents) 1. Ignoring any additional demand from the community for the new location, should Richardson accept the proposed new contract with Capital Two as is? Show your calculations. 2. Assume that there is additional demand from the community and each enrollee from the community need to pay S2,000 to enroll. How many additional enrollees fromm the community would be required for the health center to break even financially