The Metropolitan Hospital library conducts a wide variety of tests, but the 2015 departmental income statement, included below, shows a large amount of red ink. Financial analysts have recommended that the department be closed because of the red ink.

Revenue (net)			1,200,000
Less:
	Direct labor expense	400,000
	Supplies expense	520,000
	Departmental administration expense	240,000
	Depreciation expense	100,000
	Allocated hospital overhead expenses	200,000
Total expenses			1,460,000
Profit (loss)			-260,000

1) Construct a contribution margin income statement.

2) Should the department be closed if we only consider a short run financial perspective?

3) should the department be closed if we assume no significant changes at the hospital and they long run financial perspective?