7.4 Assume that Valley Forge Hospital has only the following three payer groups: Payer PennCare Medicare Commercial Number of Admissions 1,000 4,000 8,000 Average Revenue per Admission $5,000 4,500 7,000 Variable Cost per Admission $3,000 4,000 2,500 The hospital's fixed costs are $38 million. a. What is the hospital's net income? b. Assume that half of the 100,000 covered lives in the commercal