In a hospital the average cost per month is $2.300.000 for 10 patients per day when it is less busy. In the busy period the average cost per month attains $2.800.000 when there are 15 patients per day. Calculate the fixed and variable costs assuming that next month there will be 14 patients per day. a) Variable cost: $2.300.000 and fixed cost: $1.300.000 b) Variable cost: $1.400.000 and fixed cost: $1.200.000 c) Variable cost: $1.400.000 and fixed cost: $1.300.000 d) Variable cost: $1.500.000 and fixed cost: $1.300.000

In a hospital the average cost per month is $2.300.000 for 10 patients per day when it is less busy. In the busy period the average cost per month attains $2.800.000 when there are 15 patients per day. Calculate the fixed and variable costs assuming that next month there will be 14 patients per day. a) Variable cost: $2.300.000 and fixed cost: $1.300.000 b) Variable cost: $1.400.000 and fixed cost: $1.200.000 c) Variable cost: $1.400.000 and fixed cost: $1.300.000 d) Variable cost: $1.500.000 and fixed cost: $1.300.000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 18E

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