Mayo Clinic is analyzing its patient treatment costs using different costing methods:

• Requirements:
  • Calculate the Marginal Cost per additional patient treated:
    • Variable Costs: $500
    • Fixed Costs: $1,000,000
• Apply Activity-Based Costing to allocate nursing and facility costs.
• Evaluate the benefits of Marginal Cost Accounting in managing outpatient services.
• Discuss how Standard Cost Accounting could improve cost control in surgical departments.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$500
Fixed Costs	$1,000,000
Total Cost	$1,000,500