Question 1: Find the Contribution Margin for the Trauma Center (show calculations

Question 2: Find the Profit Margin for the Trauma Center (show calculations)

Question 3: What is the target fee for an overnight stay?

INFORMATION: Operating Revenues: Surgeries $9,312,500

Operating Cost: Labor Cost: $2,769,300

Other Variable Cost: $1,513,040

Depreciation: Building: $ 90,000 Ambulance (Basic and Advanced) $ 23,333 OR Equipment: $ 260,000 Interest: Building: $ 32,281 Ambulance (Basic and Advanced) $ 1,367 OR Equipment: $ 93,256 $4,782,577 _______________

NET OPERATING REVENUE $4,529,923

Non-Operating Revenue Grants and Donations $ 500,000 Non-Operating Cost: Other Fixed Cost: $2,579,000 Depreciation: Building $ 210,000 Interest: Building $ 75,322 $2,864,322 _______________

NET EARNINGS BEFORE TAX $2,165,601 Tax $ 324,840 ________________

NET EARNINGS AFTER TAX $1, 840,761