St. Teresa's Medical Center (STMC) offers a number of specialized medical services, including neuroscience, cardiology, and ancology, STMC's strong reputation for quality medical care allowed it to branch out into other services. It is now ready to expand its orthopedic services and has fust added a free-standing orthopedic clinic offering a full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facily is depreciated on a straight-ine basis. All equipment within the facility is leased. Since the clinic had no experience with in-pstient orthopedic services (for patients recovering from hip and knce replacements, for example), it decided to operate the orthopedic center for two months before determining how much to charge per patient day on an ongoing basis. As a temporary measure, the clinic adopted a patient-day charge of $190, an amount equal to the fees charged by a hospital specializing in orthopedic care in a nearby city. This initial per-day charge was quoted to patients entering the orthopedic center during the first two months with assurances that if the actual operating costs of the new center justified it, the charge could be less. In no case would the charges be more. A temporary policy of billing after 60 days was adopted so that acy adjustments could be made. The orthopedic center opened on January 1. During January, the center had 4,000 patient days of activity. During February, the activity was 4,500 patient days. Coats for these two levels of activity output are as follows: Required: 1. Classify each cost as fixed, variable, or mixed, using patient days as the activity driver. Assume that the Pharmacy s. Laboratory are "in house" and that the Laundry "shipped out" to a third party vendor. 2. Use the high-low method to separate the mixed costs into foxed and variable. 3. The administrator of the orthopedic center estimated that the center will average 4,200 patient days per month. If the center is to be operated as a nonprofit organization, determine the amount it wil need to charge per patient day? Round your interim calculations and final answers to the nearest cent. Charge per patient day How much of this charge is variable? Variable charge per patient day How much of the charge per patient day is fored? Fxed charge per patient day 4. Suppose the orthopedic center averages 4,900 patient days per month. How much would need to be charged per patient doy for the center to cover its costs? Round your answer to the nearest cent. s per patient day The main reason why the charge per patient day det eased as the activity output increased is because