Which of these expenses are fixed and which are variable? Why?
Happy Medical Office provides primary care and laboratory services. The office staff consists of one physician, one nurse, one lab tech, and an administrative staff. Happy Medical rents its 20,000 square foot building, which is allocated 15,000 square feet to the medical office and 5,000 square feet to the laboratory office, for $96,000/year. Utilities for the facility average $1,000/month.
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