St. Marks Hospital contains 490 beds. The occupancy rate varies between 60% and 90% per month, but the average occupancy rate is generally 80%. In other words, on average, 80% of the hospitals beds are occupied by patients. At this level of occupancy, the hospitals operating costs are $36 per occupied bed per day, assuming a 30-day month. This $36 figure contains both variable and fixed cost elements. This average cost figure drops to $33 when the occupancy rate is 90% (typically during the months of July and August).

During June, the hospitals occupancy rate was only 60% and a total of $404,060 in operating costs was incurred during the month.

Required:

1-a. Using the high-low method, estimate the variable cost per occupied bed on a daily basis. (Round your answer to 3 decimal places.)

1-b. Using the high-low method, estimate the total fixed operating costs per month. (Do not round intermediate calculations.)

2. Assume an occupancy rate of 70% per month. What amount of total operating cost would you expect the hospital to incur? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)