An analysis of the comparative statement of operations

Question

Question:

Gross Profit Analysis. The controller of Lowell Municipal Hospital prepared the following statement of operations, comparing the years 19B to 19A.

Inpatient service days	.	19B 330,000	19A 300,000
Patient service revenues. . . . . . . . . . . . . . . . . . . . . ..		$13,860,000	$12,000,000
Cost of services rendered: Medicinal, linens, & other supplies	.	$ 1,400,000	$ 1,000,000
Salaries - nurses, interns, residents, staff	.	9,000,000	7,500,000
Patient service overhead	.	1,500,000	1,500,000
Total cost of services rendered	.	$11,900,000	$10,000,000
Gross profit	.	$ 1,960,000	$ 2,000,000
Administrate tive expenses	.	2,013,000	1,800,000

_{Excess of revenues over expenditures .}

_{$ (53,000) $ 200,000}

Required: An analysis of the comparative statement of operations, listing the causes of the 19B excess of expenditures over revenues and the causes of the decline since 19A.