Case study 2 involves breakeven analysis and variance analysis for a skilled nursing facility. (Variance analysis is covered in Week 8.) Be sure to show your work. Use the information in the table below to answer questions 1 and 2. Your skilled nursing facility defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are shown below: Revenues: Charge Patients (6,000 Patient Days) $750,000 Fixed-Price Patients (20,000 Patient Days) 1.800.000 Total Net Revenues 2,550,000 Costs: Fixed Costs $1,170,000 Variable Costs ($45/PD) 1.170,000 Total ($90/PD) $2,340,000 Net Income $210,000 1. What is the breakeven in patient days, assuming no profit is required? 2. If volume goes up 10 percent to 28,600 patient days and the payer mix is unchanged, what will net income be? Use the following information to answer questions 3 through 7. Standard Cost Profile Lab Treatment SU #12 Expected Treatments = 1,000 Quantity Quantity Unit Variable Resource Variable Fixed Cost Cost Average Fixed Cost Average Total Cost Labor 0.80 0.80 $16.00 $12.80 Supplies 7.00 0 1.10 7.70 $20.50 $12.80 0 $12.80 $25.60 7.70 $33.30 Standard Cost Profile Lab Treatment SU #12 Expected Treatments = 1,000 Quantity Quantity Unit Variable Average Resource Variable Fixed Cost Cost Fixed Cost Labor 0.80 0.80 $16.00 $12.80 $12.80 Average Total Cost $25.60 Supplies 7.00 0 1.10 7.70 7.70 $20.50 $12.80 $33.30 Actual Month Cost Lab Treatment SU #12 Actual Treatments = 1,100 Quantity Unit Total Resource Used Cost Cost Labor 1,600 $17.00 $27,200 Supplies 7,500 1.00 7,500 $34,700 For questions 3 through 7, calculate: 3. Efficiency Variance-Labor 4. Efficiency Variance-Supplies 5. Price Variance-Labor 6. Price Variance-Supplies 7. Volume Variance