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QUESTION 1 Redwood Clinic has a revenue totaling $7,000,000. The clinic has costs totaling $6,900,000. Of this amount, 40% is variable cost and 60% is fixed cost. Compute the contribution margin for Redwood Clinic. 1. Divide the costs into and portions. In this case $6,900,000 x _ V % equals $2,760,000 variable cost and $6,900,000 x % equals $4,140,000 fixed cost. 2. Compute the contribution Margin: Revenue Less variable cost 2,760,000 Contribution Margin Less Fixed Cost 1,140,000 Operating Income Health System uses basic work week of 40 hrs/week throughout the system. One full time employee works 40hrs/week then. This system also uses 24 hour scheduling system of three 8 hour shifts/day. The administrator needs to compute the staffing requirements to fill the admissions department. There are 2 full time admin officers on day duty, one admin officer in the evening shift, and on admin officer overnight. The day shift also has one clerical person on duty during the day. Staffing remains the same 7 days/week. 1. Set up the staffing requirements worksheet below: Shift 1 + shift 2 + shift 3= hour scheduling Position: admissions officer 1 8 hour shifts 7 days a week 1.4 1.4 FTES Position: Clerical 1 0 > one 8 hour shift 7 days a week