high low method

pter 6 High/Low Analysis St Mark's Hospital contains 560 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 occupied by patients. At this level of occupancy, the hospital's operating costs are $43 per occupied bed per day, assuming a 30-day month. This $43 figure contains both variable and fixed cost elements. This average cost figure drops to $40 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 $557,920 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.) Vanable cost per bed-day 1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round intermediate calculations.) Total bed operaung costs per month pod day 1-6. Using the high-low method, estimate the total foed operating costs per month Do not found intermediate calculations) Toad operating cous 2. Assume an occupancy rate of 70% per month What amount of total operating cost would you expect the hospital to cu(Done round Intermediate calculations. Round your answer to the nearest whole dollar amount Total expected cus PO of Nod w