7. Calculate the contribution margin. Be sure to identify the variable versus the fixed expenses and the determination of variable vs fixed. 8. Based on the determination you made in the above question, discuss the break-even point in number of cases per month. What are the implications associated with this number? As part of the overall discussion concerning the da Vinci surgical system, management is contemplating the new technological advances in the system as well as the fact that the existing lease is ending. Given the situation, management is evaluating the current number of procedures, an expansion of the robotic surgical system with addition of an additional surgeon, and the lease for a new system. Table 5 New Robot Cost Cost of Financing Lease Term (Years) Average Cases Per Month Average Revenue per case $2,500,000.00 5.25% 20 $ 6,500.00 Page 6 of 8 9. Determine the monthly payment for the new lease for the da Vinci robot. 10. Assuming that other existing variable and fixed costs carryover for the next 4 years (Table 3 except for new lease amount) and that this is an operating lease, what is the NPV of da Vinci robot investment assuming a 12% discount rate. The value of the da Vinci at the end of the lease will be $500,000. 11. What is the new break-even point? 12. Is this a profitable venture for the hospital? If profitable, is it profitable enough? Why or why not? If it is not profitable, should the da Vinci robot be discontinued? Why or why not? This should be a qualitative analysis as well as quantitative.