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Question 2: Finding the Prot Margin for the Trauma Center Step One: The prot margin is the proportion of Total Revenues (Operating plus Non- Operating

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Question 2: Finding the Prot Margin for the Trauma Center Step One: The prot margin is the proportion of Total Revenues (Operating plus Non- Operating Revenues) that remain after all costs have been paid, including taxes. Divide the Net Earnings After Tax by the Total Revenue (sum of operating and non-operating revenues) and express the quotient as a decimal (to the third decimal place) or as a percentage (to the rst decimal place). What is the Profit Margin? Question 3: Setting fees per overnight stay by their target contribution margin (Do not use the Cost 89' Benefit numbers to answer this problem. Only use the numbers given in the question below.) 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 32%. The cost to the hospital of an overnight stay (staff, physical equipment, and supplies) is $410. What fee should they charge to obtain a contribution margin of 32%? [Hintz if the contribution margin is 32%, then the $410 cost is 68% of Operating Revenues]

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