Grouping Expenses: Fixed vs. Variable; Direct vs. Indirect Assume that Brooklyn Borough Hospital has pediatric group practice affiliated with the hospital and it has the cost structure shown below. Also assume that this pediatric group performs 7,500 procedures yearly. Fixed costs are $500,000 Variable costs per procedure is $25 Please answer the following questions: 1. w Explain the difference between fixed and variable costs; explain direct and indirect costs. What are the group's expected total costs? What would be their costs per procedure at 5,000 and 10,000, In anticipation of future costs, what types of costs would be considered direct costs and what would be considered indirect? How do the expenses impact net worth