Administration

Lease $($equipment$)$

Fixed

$2.$ Use the high$-$low method to separate the mixed costs into fixed and variable.

$\backslash$table$[[,$Laboratory:,,Pharmacy:,$],[$Variable$,$$$,$per patient day,$$,$per patient day$],[$Fixed$,$$$,,$$$,]]$

The administrator of the orthopedic center estimated that the center will average $4,200$ patient days per month. If the center is to be operated as a nonprofit organization, determine the amount it will need to charge per patient day? Round your interim calculations and final answers to the nearest cent.

Charge per patient day

How much of this charge is variable?

Variable charge per patient day

How much of the charge per patient day is fixed?

Fixed charge per patient day

$4.$ Suppose the orthopedic center averages $4,800$ patient days per month. How much would need to be charged per patient day for the center to cover its costs? Round your answer to the nearest cent.

$ per patient day

The main reason why the charge per patient day decreased as the activity output increased is because:

the fixed cost per patient day is reduced