The Looney Tunes Hospital ("LTH") provides medical treatment to patients under two broad categories - Normal and Emergency. Billings (sales) information for each category of patients are as follows: Total billings (sales) Category Normal treatment Emergency treatment Mark-up on Cost of Sales 25% 50% $10,000,000 $12,000,000 The management of LTH is currently using a simple system of allocating indirect costs based on number of cases processed. Lately, the management is increasingly concerned with rising costs involved in serving its patients. As a result, a study was conducted to analyse the billings and costs for each category of patients. An activity analysis of the indirect costs identified the following: Activity cost Cost driver pool Medication No. of prescriptions Cases processing No. of cases Surgery No. of operations Use of cost driver Normal Emergency Total treatment treatment usage 18,000 6,000 24,000 12,500 2,500 15,000 200 1,800 2,000 Estimated indirect cost ($) 480,000 360,000 3,600,000 4,440,000 Required: a) Calculate the gross profit and gross profit mai for each category of patients. (Round the gross profit margins to the nearest %)