METROPOLITAN HOSPITAL LABORATORY The Metropolitan Laboratory conducts a wide variety of tests, but the 2018 departmental income statement, included below, shows a large amount if red ink. Financial analyts have recommended that the department be closed because of the red ink.
REVENUE			$1,200,000
LESS
	Direct Labor Expense	$400,000
	Supplies Expense	$520,000
	Departmental administration expense	$240,000
	Depreciation Expense	$100,000
	Allocated hospital overhead expenses	$200,000
TOTAL EXPENSES			$1,460,000
PROFIT (LOSS)			$ (260,000)
ASSIGNMENT AND QUESTIONS - Please provide formulas for excel sheet
1. Construct a contribution margin income statement (Please provide formulas for excel sheet)
2. Should the Department be closed if we only consider a short-run financial persepective?
3. Should the department be closed is we assume no significant changes at the hospiotal and a long-run financial perspective?