Please prepare the homework problems in the form of a Word and/or Excel file. Try to use one file to submit your answers, if possible, and include the questions with your answers. You must show your calculations.1. Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below:Revenues AmountCharge Patients (6,000 Patient Days) $750,000Fixed-Price Patients (20,000 Patient Days) $1,800,000Total Net Revenues $2,550,000Costs AmountFixed Costs 000Costs AmountFixed Costs $1,170,000Variable Costs ($45/PD) $1,170,000Total ($90/PD) $2,340,000Net Income $210,000Using this information, answer the following two questions:a. What is the break-even in patient days for this nursing home, assuming no profit is required?b. If volume goes up 10% to 28,600 patient days, and payer mix is unchanged, what will net income be?
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Please prepare the homework problems in the form of a Word and/or Excel file. Try to use one file to