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EXERCISE 3-10 High-Low Method; Predicting Cost [LO1, LO3] St. Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month. 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 $32 per occupied bed per day, assuming a 30-day month. This $32 figure contains both variable and fixed cost elements. During June, the hospital's occupancy rate was only 60%, A total of $326,700 in operating cost was incurred during the month. Required: 1. Using the high-low method, estimate: a. The variable cost per occupied bed on a daily basis. b. The 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