Problem 3-29

1 Saleries, Nurses Fixed Cost

Aides Fixed Cost
Pharmacy Mixed Cost
Laboratory Mixed Cost
Depreciation Fixed Cost
Laundry Variable Cost
Administration Fixed Cost
Lease (Equipment) Fixed Cost

2 a.

Pharmacy
Jan $ 235,700.00 Jan
Feb $ 251,300.00 Feb
Total $ 487,000.00 Total

b.
Variable Cost = (High Cost - Low Cost) / (High Move - Low Move)
Fixed Cost = High Cost - (Variable Cost per Patient Day*High Move)

Pharmacy
High Cost $ 251,300.00 High Cost
Low Cost $ 235,700.00 Low Cost
High Move 4,500 High Move
Low Move 4,200 Low Move
Variable Cost per Patient Day $ 52.00 Variable Cost per Patient Day
Fixed Cost $ 17,300.00 Fixed Cost
3 a.
Total Per Patient Day
Variable Cost
Pharmacy $ 223,600.00 $ 52.00
Laboratory $ 98,900.00 $ 23.00
Laundry $ 20,640.00 $ 4.80
Total Variable Cost $ 343,140.00 $ 79.80

Fixed Cost
Pharmacy $ 17,300.00 $ 4.02
Laboratory $ 23,700.00 $ 5.51
Saleries, Nurses $ 55,000.00 $ 12.79
Aides $ 32,000.00 $ 7.44
Depreciation $ 25,000.00 $ 5.81
Administration $ 27,000.00 $ 6.28
Lease (Equipment) $ 36,000.00 $ 8.37
Total Fixed Cost $ 216,000.00 $ 50.22

Total Cost $ 559,140.00 $ 130.02

b.
Average Variable Cost
Pharmacy $ 223,600.00
Laboratory $ 98,900.00
Laundry $ 20,880.00
Total Variable Cost $ 343,380.00

c.
Average Fixed Cost
 Saleries, Nurses $ 55,000.00
Aides $ 32,000.00
Pharmacy $ 17,300.00
Laboratory $ 23,700.00
Depreciation $ 25,000.00
Administration $ 27,000.00
Lease (Equipment) $ 36,000.00
Total Fixed Cost $ 216,000.00

4
Average Variable Cost
Pharmacy $ 249,600.00
Laboratory $ 110,400.00
Laundry $ 20,880.00
Total Variable Cost $ 380,880.00

Average Fixed Cost

Saleries, Nurses $ 55,000.00
Aides $ 32,000.00
Pharmacy $ 17,300.00
Laboratory $ 23,700.00
Depreciation $ 25,000.00
Administration $ 27,000.00
Lease (Equipment) $ 36,000.00
Total Fixed Cost $ 216,000.00

Total Cost
Fixed Cost $ 216,000.00
Variable Cost $ 380,880.00
Total $ 596,880.00

Charge: $ 124.35
Laboratory
$ 120,300.00
$ 127,200.00
$ 247,500.00

Laboratory
$ 127,200.00
$ 120,300.00
4,500
4,200
$ 23.00
$ 23,700.00