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On a full-cost basis, how profitable was the dialysis unit last year? Please structure your answer in the form of an income statement. On a full-cost basis, how profitable was the dialysis unit last year? Please structure your answer in the form of an income statement.On a full-cost basis, Lakeside Hospital’s Renal Dialysis Division was profitable last year with a net income of $106,685. As demonstrated in the income statement below, the dialysis unit’s direct costs totaled $1,050,048, its allocated indirect costs totaled $277,267, resulting in a full cost of $1,327,315. Last year, Lakeside’s Renal Division performed 5,736 treatments, with a reimbursement rate of $250/treatment, resulting in total revenues of $1,434,000. The total revenues subtracted by the full cost of operating the unit equals a net income of $106,685 for last year.Lakeside HospitalPrior year P&L – Dialysis UnitRevenue/ procedure: 1/$250Number of treatments: 5,736Total revenues: $1,434,000Variable costs:Water: $20,896Medical supplies: $493,806Purchased lab services: $24,476Total variable costs: $539,178Total contribution margin: $894,822Fixed costs:Admin expenses: $71,970Prof salaries & wages (step-fixed): $438,900Total fixed costs: $510,870Allocated indirect costs: $277,267Net income: $106,685Total direct costs: $1,050,048Total indirect costs: $277,267Full cost: $1,327,315Please elaborate on these numbers and write an explanation for 200 words.Provide an example in a healthcare organization context. 100 wordsContinued complexity of the healthcare industry 100 words
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