1. Which of the costs above are fixed and which are variables ?

VCU Health is considering opening a new outpatient facility that offers total knee replacements at a preset price. Managers are trying to determine whether or not to take on the new project. You've gathered a lot of information related to the costs of pricing a total knee procedure, but some information you've collected may not be necessary. Using the appropriate information from below, answer the following questions You've found out that: a. Artificial knee implants cost $2,000 each b. The total cost for other supplies and medications required for the procedure is $200 c. Each knee replacement requires 4 hours of nursing time. Nurses earn $50 per hour including salary and benefits. d. Physicians will bill for their services separately so you don't need to consider the cost of physician time. e. The cost of operating the facility (utilities, security, additional housekeeping) will be $1,500,000 per year f. Opening the facility will require hiring a new service-line manager. The cost of the additional manager will be $100,000 per year (includes salary and benefits). g. You expect that in the first year you will conduct 2,500 procedures. h. The facility would be housed in an empty building VCU currently owns. The building was purchased three years ago for $800,000. It was originally intended to become a cosmetic dermatology practice but the project never got started. 1 Which of the costs above are fixed and which are variable