St. Teresa's Medical Center (STMC) offers a number of specialized medical services, including neuroscience, cardiology, and oncology. 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 just added a free-standing orthopedic clinic offering a full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facility is depreciated on a straight-line basis. All equipment within the facility is leased. Since the clinic had no experience with in-patient orthopedic services (for patients recovering from hip and knee 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 any 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. Costs for these two levels of activity output are as follows: 4,000 Patient Days 4,500 Patient Days Salaries, nurses $52,100 $52,100 Aides 32,700 32,700 Pharmacy 199,900 222,400 Laboratory 104,800 115,300 Depreciation 26,300 26,300 Laundry 204,400 229,950 Administration 24,800 24,800 Lease (equipment) 34,600 34,600 Required: 1. Classify each cost as fixed, variable, or mixed, using patient days as the activity driver. Assume that the Pharmacy & Laboratory are "in house" and that the Laundry is "shipped out" to a third party vendor. Salaries, nurses Fixed Aides Fixed Pharmacy Mixed Laboratory Mixed Depreciation Fixed Laundry Variable Administration Fixed