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Tables 2 and 3 Table 2 Costs for Cost 1,000 cases per case UFixed costs ,000,000 $2,000 Variable oosts S1000,000 $1000 Total costs You are

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Tables 2 and 3 Table 2 Costs for Cost 1,000 cases per case UFixed costs ,000,000 $2,000 Variable oosts S1000,000 $1000 Total costs You are the business manager for the orthopedics of prtvate hospital. The profits fom your department are used to subsidize other so that the hospitalis dependent upon a 20% profit from every hip-replacement Anticipating 1.000 hip-replaoements for the year, using the information in Table 2, you have priced per case. this example, there are NO semi-variable costs or stepped costs O $1,200 O $2,400 o $3,600 $6.600 O $7,200 Next year's budget is due, for your department. Although you project a smaller number of hip-replacement procedures next year, the other hospital departments are IntotaLRoft that you generated this year The total profit for next year from hip-replacements must be: (Points: 40 $100,000 o $200,000 $300,000 $600,000 $800,000 You project a total of 500 hip-replacement procedures, for next year; and both the fixed costs and the variable costs for the surgery will increase, next year. So you can no longer use Table 2. Instead, you use Table 3

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