Using the data below, answering the following questions:

Fixed costs $12,500,000

Variable cost/day $350

Charge (rev)/day $1,200

Inpatient days 16,000

1. Construct the hospital's base case projected P&L statement
2. What is the hospital's breakeven point (volume / patient days needed to breakeven)?
3. What is the economic breakeven (volume required) to provide a profit of $1,000,000?
4. What is the total contribution margin if volume decreases by 20%?

Based on the scenario in d., if fixed costs remain the same, what is the hospital's profit or loss?