Fixed Costs:	$10,000,000
Variable cost per inpatient day	$200

The hospital expects to have 15,000 inpatient days next year

1. What is the hospitals underlying cost structure?
2. What are the hospitals expected total costs?
3. What are the hospitals estimated total costs at 12,500 inpatient days? At 17,500 inpatient days?
4. What is the average cost per inpatient day at 12,500, 15,000, and 17,500 inpatient days?