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St. Mark's Hospital contains 560 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 560 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 occupled by patients. At this level of occupancy, the hospltal's operating costs are $43 per occupled bed per day, assuming a 30 -day month. This $43 figure contains both variable and fixed cost elements. This average cost figure drops to $40 when the occupancy rate is 90% (typicilly during the months of July and August). During Junte, the hosplal's occupancy rate was only 60% and a total of $557.920 in operating costs was incutred during the month. Required: 1-6. USing the high-low method, estimate the variable cost per occupied bed on a dally basis. (Round your answer to 3 decimal places.) 1.b. Using the high low method, estimate the total fixed operating costs per manth, (Do not round intermediate calculations. Round your onswer to the nearest whole doliar amount.) 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 coleuletions. Round your onswer to the nearest whole dollor amount.)

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