What are the implications of the difference

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Assume you are the manager of a routine 30-bed medial unit in an acute care hospital. The total fixed costs of your unit are $500,000 per year. The variable costs of your unit are approximately $100 per day, at the typical level of patient acuity generally observed on your unit. What is the cost per patient day if your unit has 75% occupancy? What is the cost per patient day if occupancy is 85%? Why is there a difference? What are the implications of the difference?

Reference no: EM13811260

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