MGT 420, Business Dimensions of Health Care H is Adjusting the last This is an independent assignment (no collaboration due on March 16, 2020, with brief explanations of calculations, will be accompanied by an optional Excel worksheet You are the Manager of the Physical Therapy Department and have submitted your proposed operating budget to your supervisor. However, after reviewing your proposal, your supervisor asks you to make several changes Review the information presented below in the "Sample Operating Budget and adjust this budget according to the following You have just learned that inpatient charges will probably be 3 percent higher than projected and that outpatient charges are expected to increase by 8 percent, and that your research grant support will be reduced by half b. The continuing education conference projected to net $3,200 has been canceled c. Salary expenses will likely be 2 percent higher than originally anticipated d You are required to show a projected net profit of at least 50 percent of total revenue. If your revised budget generates less than this level of net profit or surplus, indicate where you can probably cut expenses to meet the target and explain why the expenses you have chosen to cut are your best choices Sample Operating Budget-Department of Physical Therapy (July 1, 2020, through June 30, 2021) L Revenue and Income A. Inpatient Charges S550.000 B. Outpatient Charges 310.000 C. Research Grant Support 29,000 D. Continuing Education Conference 3.200 E Supplies and Equipment Sales 11.500 Total Revenue 5903.700 IL Fxpenses Direct Expenses A. Salaries B. Consultant C Honorarium D. Minor Equipment E. Equipment Rental F. Travel G. Telephone H. Supplies I Postage J. Copy Machine Rental $260,000 2.500 1,500 6,000 2000 2.500 5.000 6.000 350 11,000 K Advertisement L Dues M. Books N Equipment Maintenance and Service Contracts Total Direct Expenses 2.000 5301,500 Indirect Expenses A Employee Benefits (2396) B Administration C. Equipment Depreciation D. Physical Plant Operation E Maintenance and Repairs F. Building Depreciation G. Laundry Linen H Housekeeping Total Indirect Expenses $59,800 21.000 7.200 39,000 2.000 6.000 2.500 4.900 $144,400 S45.900 Total Expenses Net Profit or Loss 5457.800