1. What is the estimate of the marginal cost of the Phase 4 hospital services assuming, as given in the case, that 60 percent of the designated costs are fixed, and the remaining costs are variable? Areas Nursing Cost (Fixed) Ancillary Cost (Fixed) Operating Room Cost (Fixed) Lab Cost (Fixed) Radiology Cost (Variable) Drug Cost (Variable) Other Cost (Variable) Total Cost Average Cost $ 13,314 $ 53,245 $ 5,906 $ 8,097 $ 1,389 $ 15,268 $ 22,586 $ 119,805 2. Assume that the agreed-upon price is $90,000. What is the expected profit on the contract assuming that it brings in 20 new patients? (Assume for now that no new fixed costs would be required.)