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| Stark Rehabilitation Hospital is an inpatient institution for severely injured patients who need intense therapy to recover normal functioning. The hospital has a maximum capacity of 130 patients. The hospital employs nurses, doctors and physical therapists. Expenses are as follows: Medical staff: 1 nurse for every 20 patients, average cost $66,000 per year per nurse 1 doctor for every 60 patients, average cost $150,000 per year per doctor 1 physical therapist for every 10 patients, average cost $80,000 per year per therapist The cost per patient per day for meals, medicine and supplies averages $60 per day per patient. Utilities cost a base amount of $2,500 per month plus an average of $200 per patient per month. Medical and exercise equipment, occupancy expense and administrative expense total $7,700,000 per year. The hospital patient census (i.e., number of patients at any one time) varies from a minimum of 100 patients to fully occupied at 130 patients. Stark charges $300 per day per patient, and this includes the room, meals, medicine, supplies and all services. What are Stark's variable costs? A. Utilities B. Medical and exercise equipment, occupancy expense and administative expense C. Meals, medicine and supplies D. Medical staff |