Yahama Medical Centre operates a medical surgery in Japan that specializes in the diagnosis and treatment of hay fever allergies. The firm’s budget for next year is as follows:

Required

1. Calculate the contribution margin ratio.
2. Compute the breakeven point in both in-patient days and in-patient fees.
3. Compute the margin of safety ratio if the clinic operates at full capacity.
4. Suppose the direct salaries were increased to ¥826,000 and total variable costs increased to ¥1,092,000, compute the breakeven point in in-patient days if all matters not specified remain the same.
5. Suppose the fixed patient service overheads increase to ¥120,000 and total fixed costs increases to ¥270,000, compute the breakeven point, if all other matters remain the same.

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Direct supplies Direct salaries Patient service O/H Administration Total costs Number of beds available In-patient days In-patient fees Variable Costs ¥100,000 800,000 58,000 108,000 ¥1,066,000 80 per day 26,000 per annum ¥1,300,000 Fixed Costs ¥102,000 150,000 ¥252,000 Total Costs ¥100,000 800,000 160,000 258,000 ¥1,318,000