St. Mark's Hospital contains 490 beds. The occupancy rate varies between 60% and 90% per month,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
St. Mark's Hospital contains 490 beds. The occupancy rate varies between 60% and 90% per month, but the average occupancy rate is generally 80%. In other words, on average, 80% of the hospital's beds are occupled by patients. At this level of occupancy, the hospital's operating costs are $36 per occupied bed per day, assuming a 30-day month. This $36 figure contains both variable and fixed cost elements. This average cost figure drops to $33 when the occupancy rate is 90% (typically during the months of July and August). During June, the hospital's occupancy rate was only 60% and a total of $404,060 in operating costs was incurred during the month. Required: 1-a. Using the high-low method, estimate the variable cost per occupied bed on a daily basis. (Round your answer to 3 decimal places.) Variable cost per bed-day 1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round Intermediate calculations, Round your answer to the nearest whole dollar amount.) Total fixed operating costs per month 2. Assume an occupancy rate of 70% per month. What amount of total operating cost would you expect the hospital to incur? (Do not Dound your onger to the nearest whole doller emount.) During June, the hospital's occupancy rate was only 60% and a total of $404,060 in operating costs was incurred during the month. Required: 1-a. Using the high-low method, estimate the variable cost per occupled bed on a daily basis. (Round your answer to 3 decimal places.) 1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Total fixed operating costs per bed-day Total expected costs per month 2. Assume an occupancy rate of 70% per month. What amount of total operating cost would you expect the hospital to incur? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.) St. Mark's Hospital contains 490 beds. The occupancy rate varies between 60% and 90% per month, but the average occupancy rate is generally 80%. In other words, on average, 80% of the hospital's beds are occupled by patients. At this level of occupancy, the hospital's operating costs are $36 per occupied bed per day, assuming a 30-day month. This $36 figure contains both variable and fixed cost elements. This average cost figure drops to $33 when the occupancy rate is 90% (typically during the months of July and August). During June, the hospital's occupancy rate was only 60% and a total of $404,060 in operating costs was incurred during the month. Required: 1-a. Using the high-low method, estimate the variable cost per occupied bed on a daily basis. (Round your answer to 3 decimal places.) Variable cost per bed-day 1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round Intermediate calculations, Round your answer to the nearest whole dollar amount.) Total fixed operating costs per month 2. Assume an occupancy rate of 70% per month. What amount of total operating cost would you expect the hospital to incur? (Do not Dound your onger to the nearest whole doller emount.) During June, the hospital's occupancy rate was only 60% and a total of $404,060 in operating costs was incurred during the month. Required: 1-a. Using the high-low method, estimate the variable cost per occupled bed on a daily basis. (Round your answer to 3 decimal places.) 1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Total fixed operating costs per bed-day Total expected costs per month 2. Assume an occupancy rate of 70% per month. What amount of total operating cost would you expect the hospital to incur? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.)
Expert Answer:
Answer rating: 100% (QA)
Answer High activity level 90 Low activity level 60 Change Variable Cos... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
A rigid vessel A, containing 0.35 m of nitrogen at 65 C and 6 bar, is connected to a rigid vessel B, that is initially evacuated (see the figure). The valve in the connecting pipe is initially...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Cover time. Write a program that estimates the time required for the random surfer to visit every page at least once, starting from a random page.
-
Your late, rich uncle left you $250,000. The executor of the estate has asked if you would rather receive the full amount now or $30,000 a year for the next 40 years. Which of these options would you...
-
The 2020 financial statements of Outdoor Waterworks Inc. follow: Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31,...
-
What graphical tool enables us to investigate the interrelationships among a set of system entities?
-
Inglis City had a beginning cash balance in its enterprise fund of $895,635. During 2014, the following transactions occurred: 1. Interest received on investments totaled $42,400. 2. The city...
-
Discuss the concept of thread safety and the role of immutable data structures in multi-threaded applications. How can the use of immutable data help reduce synchronization overhead and prevent data...
-
please assist in implementing the included functions. import utils import pilots import os.path # WEATHER FUNCTIONS def bad_visibility(visibility,minimum): """ Returns True if the visibility...
-
If f and g are two functions such that (fg)(x) = (gf) (x) for all x. Then f and g may be defined as A B C D f (x)=x. g(x) = COS X f(x) = x, g(x) = x+1 f(x)=x-1, g(x) = x + 1 f(x)=x", g(x) = x where...
-
What is the DuPont model? Explain briefly.
-
Describe the general strategy for cash management and list some of its major objectives.
-
What is the difference between debtasset ratio and solvency ratio and how can they be interpreted?
-
What does FICO stand for and for what purpose, and how is it used?
-
What is Tobin's Q ratio and what would it refer to?
-
Gru-Mart Ltd. has 2,000,000 Common shares, issued and outstanding. They also have 200,000 $1 Preferred shares that are cumulative. They have not paid dividends in 2018 and 2019, but are ready to pay...
-
Find the reduced echelon form of each of the matrices given in Problems 120. c 1 26 + 4
-
Stavos Companys Cabinet Division manufactures a standard cabinet for television sets. The cost per cabinet is: Part of the Cabinet Divisions output is sold to outside manufacturers of television sets...
-
Model X100 sells for $120 per unit whereas Model X200 offers advanced features and sells for S500 per unit. Management expects to sell 50,000 units of Model X100 and 5,000 units of Model X200 next...
-
Julie has just retired. Her companys retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $150,000 immediately...
-
(a) Describe the effect of temperature on the equilibrium constant. (b) Industrial \(\mathrm{CH}_{3} \mathrm{OH}\) is prepared according to the reaction \[ \mathrm{CO}(\mathrm{g})+2...
-
Under atmospheric conditions the acetone-chloroform azeotrope boils at \(64.6^{\circ} \mathrm{C}\) and contains 33.5 mole per cent acetone. The vapour pressures of acetone and chloroform at this...
-
Explain in detail, with neat sketch, the working principle of a fuel cell in producing electrical energy from the chemical energy of a fuel.
Study smarter with the SolutionInn App