Help with A & B please please

Case 1 Break-Even Analysis; Hospital CVP Relationships Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients' meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1: During the year ended June 30,20x1, Pediatrics charged each patient an average of $300 per day, had a capacity of 60 beds, and had revenue of $6 million for 365 days. In addition, Pediatrics directly employed personnel with the following annual salary costs per employee: supervising nurses, $25,000; nurses, $20,000; and aides, $9,000. During the year ended June 30,202, Pediatrics had 60 rented beds. Assume that one year is 365 days throughout the case. Therefore, Pediatrics' maximum capacity (capacity of fully utilizing all beds 100% ) was 21,900 patient days ( 365 days* 60 beds). However, in this year, the department had18,500 patient days. Delaware Medical Center has the following minimum departmental personnel requirements, based on total annual patient days: Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fixed within ranges of annual patient days. For the upcoming year ending June 30,203, the Department will be able to obtain additional patient days. If that happens, the department will obtain exactly 2,400 additional canacity in terms of patient days at a cost of $720,000. Additional patient days will be either 0 or 2,400 . 1. Due to the pandemic, it is certain that the demand for service (in terms of patient days) will be unlimited for the year ending June 30, 20x3. Given the resources available, the department has three options to cope with the increasing demand. A- Which of the following actions (in patient days) is the best in maximizing profit? (i) increase patient days by 3,400 (from 18,500 to 21,900) (ii) increase patient data by 3,500 (from 18,500 to 22,000) (iii) increase patient days by 4,625 (from 18,500 to 23,125) B- What makes your choice in (a) the right answer? Without resorting g to computations, provide a reason intuitively. Case 1 Break-Even Analysis; Hospital CVP Relationships Delaware Medical Center operates a general hospital. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Delaware charges each separate entity for common services, such as patients' meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Delaware Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x1: During the year ended June 30,20x1, Pediatrics charged each patient an average of $300 per day, had a capacity of 60 beds, and had revenue of $6 million for 365 days. In addition, Pediatrics directly employed personnel with the following annual salary costs per employee: supervising nurses, $25,000; nurses, $20,000; and aides, $9,000. During the year ended June 30,202, Pediatrics had 60 rented beds. Assume that one year is 365 days throughout the case. Therefore, Pediatrics' maximum capacity (capacity of fully utilizing all beds 100% ) was 21,900 patient days ( 365 days* 60 beds). However, in this year, the department had18,500 patient days. Delaware Medical Center has the following minimum departmental personnel requirements, based on total annual patient days: Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fixed within ranges of annual patient days. For the upcoming year ending June 30,203, the Department will be able to obtain additional patient days. If that happens, the department will obtain exactly 2,400 additional canacity in terms of patient days at a cost of $720,000. Additional patient days will be either 0 or 2,400 . 1. Due to the pandemic, it is certain that the demand for service (in terms of patient days) will be unlimited for the year ending June 30, 20x3. Given the resources available, the department has three options to cope with the increasing demand. A- Which of the following actions (in patient days) is the best in maximizing profit? (i) increase patient days by 3,400 (from 18,500 to 21,900) (ii) increase patient data by 3,500 (from 18,500 to 22,000) (iii) increase patient days by 4,625 (from 18,500 to 23,125) B- What makes your choice in (a) the right answer? Without resorting g to computations, provide a reason intuitively