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You are provided the following information for the Emergency Department at Greenhills Hospital: Annual direct costs: $3,000,000 Annual indirect (overhead) costs: $1,500,000 Annual total costs:
You are provided the following information for the Emergency Department at Greenhills Hospital: Annual direct costs: $3,000,000 Annual indirect (overhead) costs: $1,500,000 Annual total costs: $4,500,000 Annual charges: $6,000,000 Assume that total charges for service X amount to $1,000,000. In addition, you know that total direct costs for service X equal $600,000. If the department provides 5,000 units of service X, what is the full (total) cost per unit for service X?
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