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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 semi-variable costs? A. Medical and exercise equipment, occupancy expense and administrative expense B. Utilities C. Meals, medicine and supplies D. Medical staff |