7. The CFO of Happy Hospital was approached by an HMO about a capitation contract for inpatient services. The HMO has 10,000 members and has offered $38 per-member-per-month to cover all inpatient services. The CFO anticipates that the hospital will incur fixed costs of $1,860,000 for these 10,000 covered lives. Variable costs per patient-day are expected to be $600. a. Calculate the breakeven point in patient-days under this contract. 4 POINTS b. The CFO anticipates 93 admissions per 1,000 covered lives with an average length of stay equal to 5.0, or 465 days per 1,000. Based on the breakeven and this information, should the CFO recommend the contract to the CEO? Why or why not? 3 POINTS