Problem E (10 points) Healing Light Hospital has a laboratory which serves hospitals within a 150-mile radius. Special blood diagnosis work is conducted in the laboratory. The lab charges $20/test. The variable costs of conducting each test is $12. The lab, which operates seven days a week-24 hours a day, has a capacity of 16,000 tests. The fixed cost of operating the lab are $10,000/month. P. Lasma, the administrator of the lab, is considering the purchase of new equipment. This would replace the current equipment. Lasma estimates that if the new equipment is purchased: -Variable costs will drop by $3 per test Fixed costs will increase by 10% Lasma determines that the capacity of the new equipment (using the 24/7 configuration described above) is 20,000 tests. Lasma also feels that the price of $20/test should continue. SHOW YOUR WORK (for partial credit) 1. Determine the break-even point in terms of the revenue generated utilizing the current equipment. 2. Determine the number of tests needed if the new equipment is purchased and a target Net Income Before Taxes of $62,700 has been established by the Healing Light Hospital Board of Directors.