use the high low method to separate the mixed cost into fixed and variable? the administrator of the orthopedic center estimated that the center will average 4.300 patient days per month. if the center is to be operated as a nonprofit organization, how much will it need to charge per patient day ? how much of this charge is variable ? how much is fixed ? Suppose the orthopedic center average 4.800 patient days per month. how much would need to be charged per patient day for the center to cover its costs ? Explain why the charge per patient day decreased as the activity output increased
St teresa's medical center offers number of specialized medical services, including neuroscience, cardiology, and oncology. STMC strong reputation for quality medical care allowed it to branch out into other services. It is now ready to expand its orthopedic services and has just added a free standing orthopedic clinic offering full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facility is depreciated on a straight line basis. All equipment within the facility is leased. Since the clinic had no experience with in-patient orthopedic services (for patients recovering from hip and knee repalecement for example), it decided to operate the orthopedic center for two months before determining how much to charge per patient day on an ongoing basis. As temporary measure, the clinic adopted a patient- day charge of $190, an amount equal to the fees charged by a hospital specializing in orthopedic care in a nearby city. This initial per - day charge was quoted to patients entering the orthopedic center during the first two months with assurances that if the actual operating costs of the new center justified it, after 60 days was adopted so that any adjustments could be made. The orthopedic center opened on January 1. During January, the center had 4.200 patient days of activity. During February, the activity was 4.500 patient days. Costs for these two levels of activity output are as follows:
4.200 Patient Days 4.500 Patient Days
Salaries Nurses 55.000 Salaries Nurses 55.000
Aides 32.000 Aides 32.000
Administration 25.000 Administration 25.000
Lease (Equipment) 36.000 Lease (Equipment) 36.000
Pharmacy 235.700 Pharmacy 251.300
Laboratory 120.300 Laboratory 127.200
Laundry 20.160 Laundry 21.600
use the high low method to separate the mixed cost into fixed and variable?
the administrator of the orthopedic center estimated that the center will average 4.300 patient days per month. if the center is to be operated as a nonprofit organization, how much will it need to charge per patient day ? how much of this charge is variable ? how much is fixed ?
Suppose the orthopedic center average 4.800 patient days per month. how much would need to be charged per patient day for the center to cover its costs ? Explain why the charge per patient day decreased as the activity output increased
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