Hello I've been working on the exercise at hand is in the attachment. Please help me with a resolution.

You are a financial consultant for Prudential, and you are preparing for a meeting with Dr. Aziz, president of Specific General Diagnostics, LLC (SGD), Prudential's parent company, in February of 2017. Prudential was formed in 2016 to provide MRI scanning services to support the research programs of Special General Diagnostics. SGD's research programs do not use all of the available capacity of the MRI scanner, so SGD's management decided to attempt to sell the excess scanning capacity to physicians in its provider network. The research programs at SGD are subsidized by the National Task Force on Registered Toxic Substances (NTFRTS). The grant award instrument specified that SGD could conduct no more than 50 research scans per month on average, and pay Prudential no more than $1,180 for each scan, the market price at the inception of the NTFRTS grant. Use of the remaining capacity of the MRI scanner was unrestricted. By the end of 2016 Prudential had experienced few profitable months, so Dr. Geller has asked your help in evaluating Prudential using the information in Exhibits 1 and 2. Exhibit 1 shows the number of tests available and sold. MRI scans were offered to physicians in the provider network Monday through Friday on a one-shift basis. Revenue and cost are summarized in the quarterly report of operations in Exhibit 2. Research scans were billed at $1,180 each, a price based on the NTFRTS's restrictions that SGD could perform no more than 50 scans per month at $1,180 per scan. Physician ordered sales are billed at $2,100 each. Also, note that facility rent was paid to SGD at a rate of $6,800 per month. Other facility charges were paid to third parties for custodial service and hazardous waste disposal. The MRI Scanner is owned by an investment group consisting of physicians who work in unrelated facilities. Fees are calculated based on a contractual agreement which cannot be canceled until 2022. Owned equipment could be sold for no more than book value. Wages and salaries are separated in the report to show the expense of four different kinds of activities. Operational salaries include two people required to be present at all times, whether the scanner is active or inactive and additional operational wages are paid to hourly patient technicians who are required when the scanner is in operation. Sales personnel and the administrators of Prudential are paid on a salary basis, and the sales personnel also receive a commission. Specific General Diagnostics personnel provide all of the payroll, billing, collections, and accounting services, for which Prudential paid SGD. Sales promotion is the amount for advertising and other promotional activities; it is not related to the current level of work but depends on how much Prudential estimates they need to spend to acquire new clients. Management believes this amount would remain the same in July. Perform an analysis of the situation at Prudential by answering the following questions. 1. Scans represent the key activity that drives costs at Prudential. For each of the expenses in Exhibit 2, which cost behaviors are observed? (Hint: prepare a table with the costs 2. 3. 4. 5. 6. listed on the left, a column for the type of cost (fixed, variable, mixed), a column for the fixed amount, as appropriate, and a column for the variable amount, as appropriate) Create a contribution margin income statement for Prudential based on the December results. Assume that research projects will consume 50 scans. Assume physician-ordered scans at the December level. Assuming the research demand for scans will average 50 per month, what number of physician-ordered scans would be necessary to break even each month? Estimate the effect on income of the following corrective actions; assume research demand is unchanged (prepare a contribution margin income statement for each): 1. Increasing the price to $2,800 for physician-ordered scans, resulting in a reduction in demand of 20%. 2. Reducing the price to $1,400 for physician-ordered scans, resulting in an increase in demand of 40%. Increased sales promotion could increase physician-ordered scans by up to 30% based on the current pricing structure, but you are unsure how much promotion is necessary. Using the assumptions in question 2, what is that total that could be spent on sales promotion and still leave Prudential with no reported loss each month if physicianordered scans were increased by 30%. Briefly summarize your analysis of Prudential's operation and provide your recommendation as to whether Prudential should be discontinued or should continue to operate, and if the latter, under which of the presented scenarios. Exhibit2