can you pls write a short memo explaining the answer below. thanks.

contribution margin is 8200 per day increase in revenue is 540000 please write a short memo about your decision. thanks. Delaware Medical Center operates a general hospital. The medical center also rents space and beds to prately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges cachepurate entity for comme services, such as patients' meals and laundry, and for administrative services, such as billing and collection Space and bed restals are fixed charges for the year, based on bed capacity tested to each entity. Delowe Medical Center Charged the following costs to Pediatrics for the year ended June 30, 2011 Patient Days (variable Bed Capacity fed Dietary $ 500.000 5 Laundry 300.000 450.000 350.000 Repairs and maintenance 10.000 General and inte Ren 1.500.000 Total During the ended use. Pediatrics charged each pages per day of had weat of 56 min for 5 days. Int Podaties direly employed person with the formalar per comployeupervisingas, 525.000, es, and alles :00 Del Modical Center has the independe Annual Patient Days Aides Nurses Supervising Nurses Up to 22.000 20 10 22.00126.000 14 5 26.01 10 29.300 31 16 Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fired with anges of patient days. Pediatrics operated at 100 percent capacityce 90 days during the year ended June 30, 2011. Administrators estimate that on these 90 days. Pediatrics could have filled another 20 beds above capacity Delaware Medical Center has an additional 20 beds available for rent for the year ending June 30, 2022. Such additional rental would increase Pediatrics fixed charges based on bed capacity In the following requirements, ignore income tases) Required: 1. Calculate the minimum number of patient days required for Pediatrics to break even for the year ending June 30, 2012 additional 20 beds are not rented. Patient demand is unknown, but assume that revenue per patient day.cost per patient day, cont perbedarymas will remain the same as for the your ended one 2. Assume that point demande per patient day.com per patient des comported and salary ses for the year endas June 10, 20the forthe year ended June 30, 2011. Prepare a schedule of Watches and increase in the year ending June 30, 2002. Din the increase or decrease in Paris the bedeutics ens this extra capacity from Delaware Medical Center H B E F G 1 Computation showing minimum number of patient days required to break-even: Statement showing patient days during the year Total sales revenue $6,000,000 Charge per patient day 300 Number of patient days 20,000 Minimum number of required personnel for up to 22,000 patient days - 20 Aides, 10 Nurses and 4 supervising nurses Fixed cost for these personnel Aides 20*9000 $180,000 Nurses 10*20,000 $200,000 Supervising Nurses 4*25000 $100,000 Total Fixed cost for Pediatrics Delaware Medical centre charges Aides Nurses Supervising Nurses Total Fixed cost $2,900,000 $180,000 $200,000 $100,000 $3,380,000 Revenue per patient day $300 Variable cost per patient day = $2,000,000/20,000 $100 (Variable cost/No. of patient days) Contribution margin per patient day = Revenue per patient day - Variable cost per patient day = $300 - $100 = $200 Break even point in Patient days = Fixed cost/contribution margin per patient day = $3,380,000/$200 = 16900 patient days 2 Fixed charges charged by Delaware Medical centre for 60 bed capacity = $2,900,000 Per bed fixed charges = $48,333 If additional 20 beds are rented, increase in fixed charges = 20*48,333 = $966,660 Schedule of Pediatrics' increase in revenue and increase in costs for the year ending June 30, 20x2. Increase in Revenue 20 beds. 90 days * $300 $540,000 Less: Increase in Expense Fixed charges $966,660 Variable charges (20 beds 90 days * $100) $180,000 $1,146,660 Decrease ($606,660) Additional personnel are not required since Pediatrics employs only minimum number of required personnel. Net Decrease in Pediatrics earnings from the additional 20 beds = $506,660 contribution margin is 8200 per day increase in revenue is 540000 please write a short memo about your decision. thanks. Delaware Medical Center operates a general hospital. The medical center also rents space and beds to prately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges cachepurate entity for comme services, such as patients' meals and laundry, and for administrative services, such as billing and collection Space and bed restals are fixed charges for the year, based on bed capacity tested to each entity. Delowe Medical Center Charged the following costs to Pediatrics for the year ended June 30, 2011 Patient Days (variable Bed Capacity fed Dietary $ 500.000 5 Laundry 300.000 450.000 350.000 Repairs and maintenance 10.000 General and inte Ren 1.500.000 Total During the ended use. Pediatrics charged each pages per day of had weat of 56 min for 5 days. Int Podaties direly employed person with the formalar per comployeupervisingas, 525.000, es, and alles :00 Del Modical Center has the independe Annual Patient Days Aides Nurses Supervising Nurses Up to 22.000 20 10 22.00126.000 14 5 26.01 10 29.300 31 16 Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fired with anges of patient days. Pediatrics operated at 100 percent capacityce 90 days during the year ended June 30, 2011. Administrators estimate that on these 90 days. Pediatrics could have filled another 20 beds above capacity Delaware Medical Center has an additional 20 beds available for rent for the year ending June 30, 2022. Such additional rental would increase Pediatrics fixed charges based on bed capacity In the following requirements, ignore income tases) Required: 1. Calculate the minimum number of patient days required for Pediatrics to break even for the year ending June 30, 2012 additional 20 beds are not rented. Patient demand is unknown, but assume that revenue per patient day.cost per patient day, cont perbedarymas will remain the same as for the your ended one 2. Assume that point demande per patient day.com per patient des comported and salary ses for the year endas June 10, 20the forthe year ended June 30, 2011. Prepare a schedule of Watches and increase in the year ending June 30, 2002. Din the increase or decrease in Paris the bedeutics ens this extra capacity from Delaware Medical Center H B E F G 1 Computation showing minimum number of patient days required to break-even: Statement showing patient days during the year Total sales revenue $6,000,000 Charge per patient day 300 Number of patient days 20,000 Minimum number of required personnel for up to 22,000 patient days - 20 Aides, 10 Nurses and 4 supervising nurses Fixed cost for these personnel Aides 20*9000 $180,000 Nurses 10*20,000 $200,000 Supervising Nurses 4*25000 $100,000 Total Fixed cost for Pediatrics Delaware Medical centre charges Aides Nurses Supervising Nurses Total Fixed cost $2,900,000 $180,000 $200,000 $100,000 $3,380,000 Revenue per patient day $300 Variable cost per patient day = $2,000,000/20,000 $100 (Variable cost/No. of patient days) Contribution margin per patient day = Revenue per patient day - Variable cost per patient day = $300 - $100 = $200 Break even point in Patient days = Fixed cost/contribution margin per patient day = $3,380,000/$200 = 16900 patient days 2 Fixed charges charged by Delaware Medical centre for 60 bed capacity = $2,900,000 Per bed fixed charges = $48,333 If additional 20 beds are rented, increase in fixed charges = 20*48,333 = $966,660 Schedule of Pediatrics' increase in revenue and increase in costs for the year ending June 30, 20x2. Increase in Revenue 20 beds. 90 days * $300 $540,000 Less: Increase in Expense Fixed charges $966,660 Variable charges (20 beds 90 days * $100) $180,000 $1,146,660 Decrease ($606,660) Additional personnel are not required since Pediatrics employs only minimum number of required personnel. Net Decrease in Pediatrics earnings from the additional 20 beds = $506,660