Direct Costs:
$1 000,000 / 400 surgeries performed = $2,500/surgery
Transplants: 2,500 x 50= $125,000
Valve Replacements = 2,500 x 1,000 = $250,000
Bypass = 2,500 x 250 = $625,000

Indirect Costs:
Medical Salaries: $5,000,000/10,000 hours = $500 per hour
Transplants: 500 x 2,000 = $1,000,000
Valve Replacements: 500 x 3,000 = $1,500,000
Bypass: 500 x 5,000 = $2,500,000

1. Building Maintenance: $1,000,000/50,000 = $20 per square foot
Transplants: 20 x 30,000 = $600,000
Valve Replacements: 20 x 10,000 = $200,000
Bypass: 20 x 10,000 = $200,000 2. Building Maintenance: $1,000,000/1000 = $1000 per job
Transplants: 1000 x 600 = $600,000
Valve Replacements: 1000 x 210 = $210,000
Bypass: 1000 x 190 = $190,000

1. Laboratory Costs: $2,000,000/650 = $3076.92 per lab report
Transplants: 3,076.92 x 200 = $615,384
Valve Replacements: 3,076.92 x 200 = $615,384
Bypass: 3,076.92 x 250 = $769,230 2. Laboratory Costs: $2,000,000/2000 = $1000 per lab hours
Transplants: 1,000 x 1,000 = $1,000,000
Valve Replacements: 1,000 x 300 = $300,000
Bypass: 1,000 x 700 = $700,000
Admin: $1,000,000/3 = $333,333.33 each

Alternative 1: Using both normal cost drivers
Transplants: $125,000 + $1,000,000 + $600,000 + $615,384 + $333,333.33 = $2,673,717.95 / 50 = $53,474.36
Valve Replacements: $250 000 + $1,500,000 + $200,000 + $615,384 + $333,333.33 = $2,898,717.95 / 100 = $28,987.18
Bypass: $625 000 + $2,500,000 + $200,000 + $769,230 + $333,333.33 = $4,427,564.10 / 250 = $17,710.26
Using Alternative 1 of the ABC analysis, transplants cost $53,474.36 per procedure, valve replacements cost $28,987.18 per procedure and bypass surgeries cost $17,710.26 per procedure. The total cost of all these treatments taking into account the amount of procedures performed for each type of treatments remains $10,000,000 ($2,673,717.95 + $2,898,717.95 + $4,427,564.10).