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B . Grouping Expenses: Fixed vs . Variable; Direct vs . Indirect Assume that Brooklyn Borough Hospital has pediatric group practice affiliated with the hospital

.

Grouping Expenses: Fixed vs

.

Variable; Direct vs

.

Indirect

Assume that Brooklyn Borough Hospital has pediatric group practice affiliated with the hospital and it has the cost structure shown below. Also assume that this pediatric group performs

7, 500

procedures yearly.

\

table

[[

Fixed costs are $

500, 000,

Variable costs per procedure is $

25

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