only need #4 a-c please

1 Part 1 - Financial performance evaluation - Understanding cost reporting As the orthopedic manager, you are reviewing the past two years of data from the cost- accounting system. The decrease in volume of activity (number of cases performed) this past year relative to the previous year is of concern. Cases (Count) Gross Revenue Actual Payments (Net Revenue) Variable Cost Contribution Margin Indirect Cost Net Margin FY 2019 100 $327,825 $108,625 $68,205 $40,420 $62,378 -$21,958 FY 2020 80 $320,825 $104,280 $52,980 $51,300 $50,290 $1,010 1. The lower number of cases seems to explain the lower Gross Revenue and Net revenue. Consider the Gross Revenue per case and Net Revenue per case and provide some potential explanations for the changes from FY 2019 to FY 2020. 2. What is the variable cost per case for each year? What could explain the change from FY 2019 to FY 2020? 3. What is the breakeven point for each year? How many more cases would have needed to be performed in FY2019 to reach a positive Net Margin? 4. Make predictions for FY 2021: .. Using the Contribution Margin per case of FY 2020, predict the total Contribution Margin for FY 2021 under the assumption that you will bring the number of cases back to 100 for FY 2021. b. Apply the same reasoning to Indirect Cost to predict Indirect Cost in FY 2021 (50 if the number of cases grow from 80 to 100, this represents a 25% growth, which means Indirect Cost should also increase by 25%). c. What is the resulting projected Net Margin for FY 2021