N points . The staff accountant for Mercy Hospital in Seattle has compiled the following cost information for the months of January through June, of the current year. The activity base that Mercy uses to measure hospital occupancy is "patient days", which is the total number of days used by patients in the hospital. Month January Total Costs Patient days $342,000 332,000 288,000 385,000 396,000 305,000 2.500 2800 1,600 3,200 March April June Required: a. Compute the total cost that Mercy Hospital should incur for 3,350 patient days. 10 points 7. The Scrooge and Marley Manufacturing Co. have two product lines; power tools and hand tools. The following income statement highlights the result of operations for the previous year. Power Hand TotelTealsTees 1377,500 928,000 449,500 Sales Cost of Goods Sold: Variable Fixed Total Cost of Goods Sold 246,500 139,200 107,300 203,000 130.500 72500 449.500 269.700 179.800 928.000 658.300 269.700 Gross Margin Selling and Administrative Costs: 594,500 389,760 204,740 217.500 119.60 97.900 812,000 509.360 302640 $116.000 $148940 52940 Variable Fixed Total Selling and Administrative Costs Operating Income (Loss) Scrooge, the owner c company estimate that dropping the hand tools product line will save $62,800 in Fixed Cost of Goods Sold. Sales of r tools are expected to increase by $125,000. However, in order to achieve the additional sales, Fixed Selling and Administrative expenses increase by $10,400. Required: Compute operating Income AFTER deleting the hand tool product line