Cost Analysis Project David Jones, the new administrator for a surgical elinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer problems 1-3. of each ootage Direct Expenses Lab Tests Utilities Administration Laboratory Day-op Suite 200,000 500,000 625,000 1,400,000 300,000 600,000 2,000 3,000 1,500 1,500 4,000 500 500 5,000 Cysto Total 10,000 S 3,375,000 I. What are the Day Op Suite's total expenses? 2. What are the Cystoscopy Department's total expenses? 3. What are the Endoscopy Department's total expenses? The information below applies to problems 4 and 5. Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below: Revenues: Charge Patients (6,000 Patient Days) Fixed-Price Patients (20,000 Patient Days) s 750,000 800,000 $2,550,000 Total Net Revenues Costs: $1,170,000 1170,000 2,340,000 S 210,000 Fixed Costs Variable Costs ($45/PD) Total ($90/PD) Net Income Using this information, answer the following two questions