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Red River Hospital’s controller estimates that the hospital uses 30 kilowatt-hours of electricity per patient day, and that the electric rate will be $.12 per kilowatt hour. The hospital also pays a fixed monthly charge of $1,250 to the electric utility to rent emergency backup electric generators.
Instructions:
Construct a flexible budget for the hospital’s electricity costs using each of the follow techniques.
Formula flexible budget.
Columar flexible budget for 30,000, 40,000, and 50,000 patient days of activity. List variable and fixed electricity costs separately.
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