The hospital budget for the first 6 months is set for an 8o% occupancy rate. Budget figures for this level are listed below. The second six months will have an occupancy rate of 6o%. What would the food cost budget be for the second six months?
Food cost=$30000
Labor cost=$25000
Operating costs=$24000
a. $2oooo
b. $22500
c. $30000
d. $32000
Answer: b. $22500
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