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Accounting in health care - Lakeside HospitalCase 1.As shown in the Exhibit 1, the breakeven point for the dialysis unit is 2683treatments per year, that is 18 patients peryear considering 156 treatments per patients (3 treatments/week).We assume that:Water usage, medical supply and purchased lab services costs change proportionally with the number oftreatments provided;Administrative costs are fixed: there is only one employee and we keep it also this year, and equipmentdepreciation will last for additional 3 years.Nurses’ and Techs’ costs are step-function; their total cost is fixed in a certain relevant range but decreases by92400 $ with a major decrease in volume, but less than proportionally. Unitary contribution /average variable cost/ remain the same.2.The full cost previously computed (425$) does not reflect the reality of costs of the unit. The organization faces highcomplexity due to the high number of departments and their interrelation. Assuming that:Depreciation, Housekeeping and Operation of Plant are fixed since they are based on Sq.feet.Administration and General costs decrease of 19%