Answer this question please.

Case 09-3: Cost-Volume-Profit (CVP) Analysis and Strategy Melford Hospital operates a general hospital. but rents space and beds to separatelyawned entities rendering specialized services such as pediatrics and psychiatric care. Melford charges each separate entity for common services such as paliems' meals and laundry, and for administrative services such as billings and collections. Space and bed rentals are fixed charges for the year. based on bed capacity rented Io each entity. Melford charged the following costs Io pediatrics for the year ended lane 30, 2013: Patient Days lied Capacity gva blag gutted) S 600,000 300.000 450.000 .. 350.000 7 Repairs and maintenance. 7 30.000 General and administrative . 7 1.300000 Rent 7 1.500000 Billings and collecnons 300 000 7 Total... 02000000 32900000 During the year ended lune 30, 2013, pediatrics charged each patient an avuage of $300 per day. had a capacity of so beds. and had revenue of 36.000000 for 365 days. in addition, pediatrics directly employed tlte following personnel: Annual Salaries Supervising nurses . $25,000 Nurses . 20,000 Aides . 9.000 Melfcrd has the following nunimum departmental personnel requirements based on total annual patients-days: Annual Plenl Days Aides Nurses Sum' ' 3 Nurses Up to 21,900 .. 20 10 4 21300 to 26.000 26 13 4 215,001 to 29.200 .. 30 15 4 These stafng levels represent fullrtime equivalents. Pediauics always employs only the minimum number of required fullrtime personnel. Salaries of supervising nurses. nurses. and sides are therefore xed within ranges of armual patient days. Pediatrics operated at 100% capacity on 00 days during the year ended June 30. 2013. It is estimated that during these 90 days the demand exceeded 20 patients mare than capacity. Melford has an additional 20 beds available for rent for the year ending lane 30. 2014. Such additional rental would increase pediatrics fixed charges based on bed capacity. REQUIRED: 1. What is the strategic role of cw analysis for the pediatrics unit of Melford hospital? 2. Determine the minimum number of patient days required for pediatrics to breakeven for the year ending lune 30, 2014. if the additional 20 beds are not rented. Pau'ent demand is unlmown. but you can assume that revenue per pau'enlrday. cost per palienHiay. cost per bed, and salary rates will remain the same as for the year ended lane 30. 2013. Assume that patient demand. revenue. revenue per patient day. cost per patientdny, cosl per bed. and salary rates for die year ending June 30. 2011 remain the same as for the year ended June 30. 2013. Prepare a schedule of increase in revenue and increase in oasis for the year ending lune 30, 2014, in wider m delermine the net increase or decrease in earnings from the additional 20 beds if pediatrics rents this extra capacity from Melfofd