Problem:
Assume that Lexington Hospital has fixed costs of $10 million and a variable cost (per inpatient day) rate of $200.
Required:
Question: What is the total cost forecast for a volume of 50,000 patient days?
- $12.5 million
- $15 million
- $17.5 million
- $20 million
- $25 million
Note: Please provide equation and explain comprehensively and give step by step solution.