Question
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:
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.
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