New Hospital has $200,000 of fixed overhead costs. It has the following three types of patients:

When New Hospital plans its new marketing campaign, what type of patient should they try to attract, assuming:

a. They are not near capacity in any area.

b. They are nearly full and can take a limited number of additional patient days.

c. They have plenty of beds but are running out of operating room time.

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Variable Average Length Average Length of OR Price Cost of Stay Procedure (S) (S) (Days) (Hours) DRG 1 8.000 7,700 DRG 2 2,000 1,000 DRG 3 5,000 3,000 238 1 4 8 7