CVP Problem Las Pinas Medical Hospital (LPMH) operates a general Hospital but rents space and beds to separate entities for specialized treatment such as pediatrics, maternity, psychiatric, etc. Las Pinas Medical charges each separate entity for common services to its patients like meals and laundry and for all administrative service such as billings, collections, etc. All uncollectible accounts are charged directly to entity. Space and bed rentals are fixed for the year. For the entire year ended June 30, the Pediatrics Department at Las Pinas Medical Hospital charged each patient an average of P65 per day, had capacity of 60 beds, operated 24 hours per day for 365 days, and had revenue of P1,138,800. Expenses charged by the Hospital to the Pediatrics Department for the year ended June 30 were: Basis of allocation Patient Days (Variable) Bed Capacity (Fixed) Dietary P 42,952 Janitorial P 12,800 Laundry 28,000 Laboratory other than direct charges to patients 47,800 Pharmacy 33,800 Repairs and maintenance 5,200 7,140 General administrative services 131,760 Rent 275,320 Billings and collections 40,000 Bad debts expense 47,000 Other 18,048 25,980 Total P262,800 P453,000 The only personnel directly employed by the Pediatrics Department are supervising nurses, nurses, and aides. The Hospital has minimum personnel requirements based on total annual patient days. Hospital requirements beginning at the minimum, expected level of operation follow: Annual Patient Days | Aides Nurses Supervising Nurses 10,000-14,000 21 11 4 14,001-17,000 22 12 4 17,001-23,725 22 13 4 23,726-25,550 25 14 5 25,551-27,375 26 14 5 27,376-29,200 29 16 6 The staffing levels above represent full-time equivalents, and it should be assumed that the Pediatrics Department always employs only the minimum number of required full-time equivalent personnel. Annual salaries for each class of employee follow: supervising nurses, P18,000; nurses, P13,000 and aids, P5,000. Salary expense for the year ended June 30 for the year ended June 30 for supervising nurses, nurses, and aids was P72,000, P169,000 and P110,000, respectively. The Pediatrics Department operated at 100% capacity during 111 days of the past year. It is estimated that during 111 days of the past year. It is estimated that during 90 of these capacity days, the demand averaged 17 patients more than capacity and even went as high as 20 patients more on some days. The Hospital had additional 20 beds available for rent the coming fiscal year. REQUIRED: Compute for the following: 1. The variable expense per patient day. 2. The contribution margin per patient day. 3. The patient days necessary to cover fixed costs for bed capacity and supervisory nurses. 4. The patient days needed to cover total costs. 5. If the Pediatrics Department rented an additional 20 beds and all other factors remain the same as in the past year, what would be the increase in revenue? 6. Continuing to consider the 20 additional beds, what is the increase in total variable cost applied per patient day. 7. Refer to the information given in the problem, what is the increased fixed cost applied for bed capacity, given the increased number of beds? 8. Refer to the information given in the problem, what is the total annual gain (loss) from renting the additional 20 beds