Help with number #7. Please see scenario below.

How would you describe the relationship of having a "mark up" and YTD sales?

NHM 475: Management of Food Service Systems Financial Management Analysis Case Scenario1: Hospitals A, B, and C are the same with the exception of their treatment of internal charges. The foodservice department at Hospital A does not charge the cost of ward supplies, nourishments, and catering to the receiving departments. Hospital B permits the transfer credit of floor stock, nourishments, and catering at the equivalent raw food cost. Hospital C is managed by a contract foodservice company. Floor stock and nourishments are charged to the receiving department units at raw food cost, but internal catering is charged at the same markup as the external catering as part of the company's agreement with administration. This contractual agreement is often a result of an incentive- based fee structure that awards a contractor a percentage of revenue. Hospital C 20,000 $700,000 Hospital A Patient days TYD: Gross Dept expenses: Hospital B 20,000 $700,000 20,000 $700,000 YTD YTD Sales YTD YTD Sales YTD YTD Sales Food Cost& Charges Food Cost& Charges Food Cost& Charges $15,000$0.00 $15,000 $15,000 $15,000$15,000 Floor stock nourishments Internal catering $30,000 $0.00 $30,000 $30,000 $30,000 $75,000 Catering cash Cafeteria cash Vending cash $10,000 25,000 $10,000 25,000 $10,000 25,000 $68,000 $150,000 $68,000$150,000 $68,000 $150,000 $10,000 20,000 $10,000 20,000 $10,000 $ 20,000 Note: YTD = Year-to-Date Questions 1-7 are based on Scenario 1 (7 points): 1. 2. 3. 4. Which hospital earned the highest revenue? Which hospital has the lowest revenue per patient day? which hospital has a Food Cost Percentage of 55.41%? Based on the total gross department expenses at all 3 hospitals, total food cost represents % of expenses. 5. What is the gross department expense per patient day at each hospital? 6. What is the sales mix ratio of internal catering at Hospital C? 7. How would you describe the relationship of having a "mark-up" and YTD sales? a. b. c. d. A mark-up has no impact on YTD sales. A mark-up increases sales and increases overall cost per patient day. A mark-up increases sales and lowers overall cost per patient day. A mark-up decreases sales and increases overall cost per patient day. Note: Remember, complete all the questions, and record your answers on a piece of paper to all the questions before proceeding to the Assessments link to submit your answers. 2