accounting please help 457894

Black Forest Clinic contains 340 beds. The average occupancy rate is 85% per month. In other words, an average of 85% of the clinic’s beds are occupied by patients. At this level of occupancy, the clinic’s operating costs are $40 per occupied bed per day, assuming a 30 day month. This $40 cost contains both variable and fixed cost elements.

During November, the clinic’s occupancy rate was only 70%. A total of $339,150 in ioperating cost was incurred during the month.

Required:

1. Using the high low method, estimate:

a. The variable cost per occupied bed on a daily basis.

b. The total fixed operating costs per month.

2. Assume an occupancy rate of 80% per month. What amount of total operating cost would you expect the clinic to incur?