Question: Please help me answer questions 1-5. Case 1 Break-Even Analysis; Hospital CVP Relationships Delaware Medical Center operates a general hospital The medical center also rents

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 entites rendering specialized services, such as Pediatrics and Psychiatnc Care. Delaware charges each separate entity for common services, such as patents" 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 30,201 During the year ended June 30,201, Pediatrics charged each patent 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 30,20 2. Pediatrics had 60 rented beds. Assume that one year is 365 days fhroughout the case. Therefore. Pediatrics' maximum capacily (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 followng minimum departmental personnel requirements, based on total annual patient days Pediatncs always employs only the minimum number of required personnel Salaries of supervising nurses, nurses, and aides are therefore foed 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 exacty 2,400 addoonal capacity in terms of patent days at a cost of $720,000. Additional patient days will be either 0 or 2.400 Required: 1. Make a contribution format income statement for the year ended June 30,202. Revenue per patient day, cost per patient day, cost per bed, and salary rates remain the same as for the year ended June 30,201. 2. Computation of each of the following items for Pediatrics regarding the year ended June 30 , 202 (a) break-even point in terms of number of patient days (b) margin of safety in percent (c) operating leverage 3. For the upcoming year ending June 30,203, patient days will change from 18,500 depending on the outside situation. For each of the following cases, determine the percent change and direction (increase or decrease) of income change from the year ended June 30 , 202 - (a) 15% decrease in patient days (b) 25% increase in patient days 4. Ignore (3). 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 30,203. 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 days 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 to computations, provide a reason intuitively. 5. Pediatrics operated at 100 percent capacity on 90 days during the year ended June 30,202. Administrators estimate that on these 90 days, Pediatrics could have filled another 20 beds above capacity. Delaware Medical Center has an additional 20 beds available for rent for the year ending June 30,202. Such additional rental would increase Pediatrics' foxed charges by $540,000 Do an incremental analysis to determine the net increase or decrease in Pediatrics' earnings from the additional 20 beds if Pediatncs had rented this extra capacity from Delaware Medical Center
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