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St. Mark's Hospital contains 500 beds. The occupancy rate varies between 60% and 90% per month, but the average occupancy rate is generally 80%. In

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St. Mark's Hospital contains 500 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 hospital's beds are occupied by patients. At this level of occupancy, the hospital's operating costs are $37 per occupied bed per day, assuming a 30day month, This $37 figure contains both variable and fixed cost elements. This average cost figure drops to $34 when the occupancy rate is 90% (typically during the months of July and August). During June, the hospital's occupancy rate was only 60% and a total of $424,600 in operating costs was incurred during the month. Required: 1-a. Using the highlow method, estimate the variab e cost per occupied bed on a daily basis. (Round your answer to 3 decimal places.) per bedday 1-b. Using the highlow method. estimate the total fixed operating costs per month. (Do not round intermediate calculations.) per month 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 maount.)

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