Operating Revenues:

Surgeries $9,312,500

Operating Cost:

Labor Cost: $2,769,300

Other Variable Cost: $1,513,040

Depreciation:

Building: $ 90,000

Ambulance (Basic and Advanced) $ 23,333

OR Equipment: $ 260,000

Interest:

Building: $ 32,281

Ambulance (Basic and Advanced) $ 1,367

OR Equipment: $ 93,256

$4,782,577 _______________

NET OPERATING REVENUE $4,529,923

Non-Operating Revenue

Grants and Donations $ 500,000

Non-Operating Cost:

Other Fixed Cost: $2,579,000

Depreciation: Building $ 210,000

Interest: Building $ 75,322

$2,864,322

_______________

NET EARNINGS BEFORE TAX $2,165,601

Tax $ 324,840 ________________

NET EARNINGS AFTER TAX $1, 840,761

First question set: Use the above information,

What is the contribution Margin? and What is the Profit Margin? Please show calculations for each equation.

Second question:

Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital room will be 35%. The cost to the hospital of an overnight stay (staff, physical equipment, and supplies) is $400...

What fee should they charge to obtain a contribution margin of 35%? and What is the target fee for an overnight stay? Show calculations.