The data for Green Valley Hospitals contribution format income statement for 2018 is listed below:

Assuming hospital had 1000 patient visits in 2018:

1. Calculate the hospitals contribution margin ratio, break-even number of visits, break-even total revenue.
2. Assume revenue has increased by 600 visits, what will be the increase in net income?
3. Degree of operating leverage? Margin of safety in dollars?
4. Assume patient visits increased 40%, what will be the increase in net income?

Revenues Variable Expenses Per visit 12,000,000 $240 5,000,000 50 (Per variable) 7,000,000 4,500,000 2,500,000 Contribution margin Fixed Expenses Net Income