Mercuri Medical Institute operates a 300bed Requirements hospital and offers a number of specialized medical (a) How much will the hospital need to services. Mercuri's hospital facility and equipment charge per patient day to break even are leased on a long-term basis. The hospital at this level of activity? charges $2,400 per patient day. On the basis of past cost data, Mercuri has estimated its variable costs as $600 per patient day. Fixed costs are $5,400,000 per month. The hospital's administrator has estimated that the hospital will average 4,500 patient days per month. (b) Refer to the original data in the problem. How many patient days must Mercuri average each month to earn a target prot of $45,000 per month? Requirement (a.) How much will the hospital need to charge per patient day to break even at this level of activity? First determine the basic Cost-VolumeProfit (CVP) equation. _ Total fixed costs v - Total variable costs = Profit Now rearrange the basic CVP equation to solve for the amount the hospital will need to charge per patient day to break even at the current level of activity. (Round your answer to the nearest dollar.) The hospital will need to charge $D per patient day to break even at the current level of activity. Requirement (b.) Refer to the original data in the problem. How many patient days must Mercuri average each month to earn a target prot of $45,000 per month? Enter the formula and calculate how many patient days must Mercuri average each month to earn a target prot of $45,000 per month. (Round the required unit sales to the nearest whole number.) Req. units ( Target profit + Total fixed costs ),I Contribution margin per unit (days) Schaub Company produces and sells 75,000 boxes of specialty foods each year. Each box contains the same assortment of food. The company has computed the following annual costs: Cost Item Total Costs Variable production costs $ 525,000 Fixed production costs 430,000 Variable selling costs 300,000 Fixed selling and administrative costs 240,000 Total costs $ 1,495,000 Schaub normally charges $22 per box. A new distributor has offered to purchase 7,500 boxes at a special price of $18 per box. Schaub will incur additional packaging costs of $3 per box to complete this order. Requirements (3) Suppose Schaub has surplus capacity to produce 7,500 more boxes. What will be the effect on Schaub's income if it accepts this order? (b) Suppose that instead of having surplus capacity to produce 7,500 more boxes, Schaub has surplus capacity to produce only 1,500 more boxes. What will be the effect on Schaub's income if it accepts the new order for 7,500 boxes? Requirement (a) Suppose Schaub has surplus capacity to produce 7,500 more boxes. What will be the effect on Schaub's income if it accepts this order? Select the items that are relevant if the order is accepted, then calculate the effect on income. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net decrease in income.) Total additional packaging costs :| Total incremental variable costs :I _tal incremental revenue :| Total incremental variable osts |;| Net' Increase in income Requirement (b) Suppose that instead of having surplus capacity to produce 7,500 more boxes, Schaub has surplus capacity to produce only 1,500 more boxes. What will be the effect on Schaub's income if it accepts the new order for 7,500 boxes? Select the items that are relevant if the order is accepted, then calculate the effect on income. (Only complete the necessary answer boxes. Use parentheses or a minus sign for a net decrease in income.) Total incremental variable costs Total additional packaging costs Total incremental revenue Total opportunity cost Net increase in income