What is the most appropriate cost per unit for the hospital to use?

The Getwellquick Hospital has total costs of $1m for 20X1. During 20X1, 200,000 patients were treated and doctors were paid $500,000.

What is the most appropriate cost per unit for the hospital to use?
A . $0.20
B . $2.50
C . $5.00
D . $7.50

Answer: C

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