# ECON240 Pennsylvania Operating and Non Operating Costs and Revenues for Trauma Center Paper Answer 3 questions and show your work, please provider answers

ECON240 Pennsylvania Operating and Non Operating Costs and Revenues for Trauma Center Paper Answer 3 questions and show your work, please provider answers on answer sheet. The question and cost benefit is there to help you. a6-s2 [for teacher’s use]
Econ 240: Assignment 6: Question Set 6
Topic: Contribution and Profit Margins
Completion = 1 pt
Question 1 = 2 pt
Question 2 = 2pts
Question 3 = 1 pt extra credit for getting it on your own
are in that document.
Question 1: Finding the Contribution Margin for the Trauma Center
Step One: The contribution margin is the proportion of Operating Revenues that remain
after Operating Costs are paid. Divide the Net Operating Revenue by the Operating Revenue
and express the quotient as a decimal (to the second decimal place or as a percentage.
What is the Contribution Margin?
Question 2: Finding the Profit Margin for the Trauma Center
Step One: The profit margin is the proportion of Total Revenues (Operating plus NonOperating Revenues) that remain after all costs have been paid, including taxes. Divide the
Net Earnings After Tax by the Total Revenue (sum of operating and non-operating
revenues) and express the quotient as a decimal (to the third decimal place) or as a
percentage (to the first decimal place).
What is the Profit Margin?
Question 3: Setting fees per overnight stay by their target contribution margin
(Do not use the Cost & Benefit numbers to answer this problem. Only use the numbers
given in the question below.)
Let us suppose that a hospital wants to set their fees for an overnight stay such that the
contribution margin on a hospital room will be 32%. The cost to the hospital of an
overnight stay (staff, physical equipment, and supplies) is \$410. What fee should they
charge to obtain a contribution margin of 32%? [Hint: if the contribution margin is 32%,
then the \$410 cost is 68% of Operating Revenues.]
What is the target fee for an overnight stay? In other words, what must the Operating
Revenues from that one room be?
Copyright © Patricia Awerbuch, 2014. This work may not be used, reproduced, or
distributed outside the Drexel LeBow College of Business course Econ 240 Economics of
Health Care Systems without the express written permission of the author.
1
a6-s2 [for teacher’s use]
Econ 240: Assignment 6: Costs and Benefits for Question Set 6
Use this information together with the instructions on your Question Set to answer the questions.
OPERATING AND NON-OPERATING COSTS AND REVENUES FOR TRAUMA CENTER
This document rearranges our variable and fixed cost information into the Operating and NonOperating Costs that would appear on an Income Statement, so that a contribution margin and
profit margin can be calculated. [Notice that Revenues are now shown in a right-hand column and
costs are shown in a left-hand column.]
Operating Costs relate directly to patient care. Our previous labor costs, equipment costs, and a
portion of the building cost are directly related to patient care and reported as Operating Costs.
The remainder of the building and administrative costs are reported as Non-Operating costs.
Health care facility Income Statements may report Non-Operating Revenue separately as well,
since an accurate calculation of contribution margin requires that patient fees alone be set against
the operating costs incurred to treat patients.
Operating Revenues:
Surgeries (patient fees)
Operating Cost:
Labor Cost:
Other Variable Cost:
Depreciation:
Building:
OR Equipment:
Interest:
Building:
OR Equipment:
NET OPERATING REVENUE
\$8,456,210
\$3,774,852
\$ 487,078
\$9,97,292
\$ 474,901
\$ 110,810
\$ 153,429
\$ 73,062
\$ 17,048
\$6,088,471
Non-Operating Revenue
Grants and Donations
Non-Operating Cost:
Other Fixed Cost:
Depreciation: Building
Interest: Building
NET EARNINGS BEFORE TAX
Tax
NET EARNINGS AFTER TAX
_______________
\$2,367,739
\$2114053
\$1,923,788
\$ 887,902
\$ 147,984
\$2,959,674
\$ 243,539
_______________
\$1,522,118
\$1,278,579
2
Copyright © Patricia Awerbuch, 2014. This work may not be used, reproduced, or distributed
outside the Drexel LeBow College of Business course Econ 240 Economics of Health Care Systems
without the express written permission of the author.
a6-s2 [for teacher’s use]
STUDENT NAME:
Econ 240: Assignment 6: Answer Sheet for Question Set 6
Completion = 1 pt
Question 1 = 2 pt
Question 2 = 2pts
Question 3 = 1 pt extra credit for getting it on your own
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?

attachment

Don't use plagiarized sources. Get Your Custom Essay on
ECON240 Pennsylvania Operating and Non Operating Costs and Revenues for Trauma Center Paper Answer 3 questions and show your work, please provider answers
Just from \$13/Page
Calculate the Price of your PAPER Now
Pages (550 words)
Approximate price: -

Why Choose Us

Top quality papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

Free revisions

If you feel that we missed something, send the order for a free revision. You will have 10 days to send the order for revision after you receive the final paper. You can either do it on your own after signing in to your personal account or by contacting our support.

On-time delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & confidential

We use several checkers to make sure that all papers you receive are plagiarism-free. Our editors carefully go through all in-text citations. We also promise full confidentiality in all our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.