1. Calculate the minimum number of patient-days required for Pediatrics to break even for the upcoming year June 30, 2020. Assume that revenue per patient-day, cost per patient-day, cost per bed and salary rates for this upcoming year June 30, 2020, remain the same as for the year ended June 30, 2019.

2. Calculate the operating leverage ratio.

3. Calculate the increase in income using the operating leverage.

Helping Hospital operates a general hospital but rents space to separately owned entities rendering specialized services such as pediatrics and psychiatry. Helping Hospital charges each separate entity for patients' services (Meals and laundry) and for administrative services (billings and collections). Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Helping Hospital charged the following costs to Pediatrics for the year ended June 30, 2019. Patient Services Bed Capacity (Variable cost) Fixed Cost) Dietary $560,000 Janitorial $70,000 Laundry 300,000 Laboratory 410,000 Pharmacy 300.000 Repairs and 30,000 maintenance General and 1,300,000 administrative Rent 1,500,000 Billings and 250,000 collections Total $1,820,000 $2,900,000 In addition to these charges from Helping Hospital, Pediatrics incurred the following personnel costs. Annual Salariesthese salaries are fixed Supervising $100,000 nurses Nurses 420.0001 Assistants 180,000 Total $700,000 During the year ended June 30, 2019, Pediatrics charged the following and had the following relevant days: $500 daily charge to patient for services $6,500,000 Total Revenues 36 Relevant Range of daily beds