Costs to Granville Hospital for Renting to Pediatrics Costs to Granville Hospital for Renting to Pediatrics Patient Days Variable Bed Capacity Fixed Dietary $1,800,000 Janitorial $ 210,000 Laundry 900,000 Laboratory 1,350,000 Pharmacy 1,050,000 Repairs and maintenance General admin Rent 90,000 3,900,000 4,500,000 Billings and collection 900,000 Total $6,000,000 $8,700,000 MD&A Granville Hospital Management's Discussion and Analysis (excerpt from annual report) Our company is a general hospital renting space to entities within the hospital. Each entity receives common services from the hospital, such as patients' meals, laundry, and billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Pediatrics is one of the entities in Granville Hospital. Its current capacity is 60 beds, and it operated at full capacity for 90 days during the period. We charged Pediatrics $900 per patient day, resulting in revenues of $18,000,000. We conducted a breakeven analysis to evaluate the financial effects of providing 20 additional beds to Pediatrics. Our analysis assumes that Pediatrics' annual number of patient days, and our costs (variable and fixed) relating to Pediatrics, will increase proportionally. However, the fee we charge Pediatrics per patient day will not change. Review the communication below. For each number (e.g., [1], [2], etc.), input the correct amount or choose the correct answer from the option list provided by using the information in the exhibits. To: Taylor Soard, CEO From: Jake Moore, Accounting Department Manager Re: Breakeven Analysis for Pediatrics Date: May 15, Year 7 Hello Taylor, At Pediatrics' current capacity of 60 beds, total fixed costs are $[1], the contribution margin is $[2], and the breakeven point in patient days is [3].. If we provide 20 additional beds to Pediatrics, net income should [4] by $[5]. Best, Jake Item 1. 2. 3. 4. 5. Answer 123 123 123 123 Salary Expenses (Annual) Annual Salary Supervising nurse Nurse Aide $70,000 60,000 28,000 Staffing Requirements Staffing Requirements Supervising Annual Patient Days Aides Nurses Nurses Up to 21,900 21,901 to 26,000 26,001 to 29,200 220 20 10 26 13 30 15 035 444 4