Question: The MidTown Nursing Facility has fixed costs amounting to $ 2 0 0 , 0 0 0 . At an occupancy rate of 1 0

The MidTown Nursing Facility has fixed costs amounting to $200,000. At an occupancy rate of 100 patients, the fixed cost per patient amounts to $2,000. In another way to think about fixed costs, if the administrator can increase the occupancy rate to 125 patients, will the fixed cost per patient then:
A.Increase
B.Decrease
C.Neither of the above

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