Question

The midtown nursing facility has fixed costs amounting to $200,000. at an occupancy rate of 100 patients, the fixed cost per patient amounts to $2,000. in another way to think about fixed costs, if the administrator can increase the occupancy rate to 125 patients, will the fixed cost per patient then:

Answer 1

Problem: Fixed cost per patient if the occupancy rate turns 125 based on the given situation.

Given: Midtownn nursing facility fixed costs $200,000
100 patient
1 patient/$2 000

Operation: division

Solution: $200,000/125=N
(if the nursing facility still have its fixed cost nailed on $200,000)

Answer: $1,600

Of 125 patients each would pay $1,600 for their occupancy.