3. As the orthopedic manager, you are reviewing the past 2 ye data from the cost-accounting system. You know that you wo hard to improve the services but note that the volumes are lower in 2015, and this concerns you. FY2014 FY2015 100 Cost-Accounting Report: Orthopedics Cases Gross revenue Actual payments Variable cost Contribution margin Indirect cost Net margin FY, fiscal year. $327,825 $108,625 $68,205 $40,420 $62,378 - $21,958 $320,825 $104,280 $52,980 $51,300 $50,290 $1,010 a. Explain what happened to reimbursements between 2014 and 2015. What could have changed to explain the differences in revenue and payments? What is the variable cost per case for each year? What could explain the changes from one year to the other? c. What is the breakeven point for each year? d. Assuming that you have unused capacity, there is demand for the services, and you can get the volume back to 2014 levels for 2016, calculate your estimated 2016 contribution margin and net margin (assume the 2015 revenue per case and the allocation of indirect cost would be based at the same rate as 2015 and is allocated on the number of cases). 3. As the orthopedic manager, you are reviewing the past 2 ye data from the cost-accounting system. You know that you wo hard to improve the services but note that the volumes are lower in 2015, and this concerns you. FY2014 FY2015 100 Cost-Accounting Report: Orthopedics Cases Gross revenue Actual payments Variable cost Contribution margin Indirect cost Net margin FY, fiscal year. $327,825 $108,625 $68,205 $40,420 $62,378 - $21,958 $320,825 $104,280 $52,980 $51,300 $50,290 $1,010 a. Explain what happened to reimbursements between 2014 and 2015. What could have changed to explain the differences in revenue and payments? What is the variable cost per case for each year? What could explain the changes from one year to the other? c. What is the breakeven point for each year? d. Assuming that you have unused capacity, there is demand for the services, and you can get the volume back to 2014 levels for 2016, calculate your estimated 2016 contribution margin and net margin (assume the 2015 revenue per case and the allocation of indirect cost would be based at the same rate as 2015 and is allocated on the number of cases)