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Fixed costs are set expenses each year. These are set figures the hospital must pay regardless of how the service is used. They are tied to the procedure, but they don’t depend on the number of procedures performed. For your cookie business, you have to pay the same rent each month, regardless of how many cookies you sell. Maintenance fees and service contracts for equipment are good examples of fixed costs in a hospital setting. To determine the total fixed costs, add each fixed cost together.
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