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You are the manager of an emergency department. Your department classifies patients, based on the resource intensiveness, into categories 1, 2, or 3. The variable
You are the manager of an emergency department. Your department classifies patients, based on the resource intensiveness, into categories 1, 2, or 3. The variable costs associated with a type 1 patient are $200, with a type 2 patient are $500, and with a type 3 patient are $800. About half of all patients are type 1, and the remaining patients split evenly between types 2 and 3. What is the appropriate variable cost to use for a break-even analysis?
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