Classify each cost as fixed, variable or mixed, using patient days as the cost driver.

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

The accounting department has estimated that the average patient days per month will be $2000.$ If the Centre is to be operated as a not$-$for$-$profit, how much will it need to charge per patient day?

Suppose the Centre averages $2500$ patient days per month. How much would need to be charged per patient day for the Centre to cover costs?

Explain why the per$-$patient$-$day charge decreased in $($d$)$ above.

Briefly explain the benefit of the classification of costs in the planning for the Centre.