Problems 1. Henry Hospital is reviewing the profitability of its nursing and ancillary services. The following table provides the revenue, direct expenses, and general and administrative costs. Allocate the general and administrative costs to the nursing and ancillary services based on revenue to calculate the net income and profit margin generated by each. 2. Henry Hospital is reviewing the profitability of its nursing and ancillary services. The table in problem 7-1 provides the revenue, direct expenses, and general and administrative costs, allocate the general and administrative costs to the nursing and ancillary services based on direct expenses to calculate the net income and profit margin generated by each. 3. Barnard Surgical Associates, a for-profit outpatient surgery center, is instituting a profit-sharing program for physicians and other medical personnel. The profit-sharing program will distribute half of the fully allocated net income in each revenue line. Given the following table, allocate general and administrative costs to the three revenue lines based on revenue; calculate net incomes and profit margins and the amount of profitsharing that will be distributed to medical staff. 4. Barnard Surgical Associates, a for-profit outpatient surgery center, is instituting a profit-sharing program for physicians and other medical personnel. The profit-sharing program will distribute half of the fully allocated net income in each revenue line. Given the table in problem 7-3, allocate general and administrative costs to the three revenue lines based on direct expenses; calculate net incomes and profit margins and the amount of profit-sharing that will be distributed to medical staff. What is the increase and decrease in profit-sharing payments for employees in the three revenue lines based on the use of direct expenses rather than revenue (problem 7-3)? Which allocation base would you recommend to the owners of Barnard, and why