Determining charges for private pay residents. Shady Grove Nursing Home has 220 private pay residents. The administrator is concerned about balancing the ratio ofits private pay to non-private pay patients. Non-private pay sources reimburse an average of $125 per day whereas private pay residents pay on average 90 percentof full daily charges. The administrator estimates that variable cost per resident per day is $45 for supplies, food, and contracted services, and annual fixedcosts are $6,000,000. What is the daily contribution margin of each non-private pay resident? If 25 percent of the residents are non-private pay, what willShady Rest charge the private pay patients to break even? What if non-private pay payors cover 50 percent of the residents? The owner of Shady Rest Homeinsists that the facility earn $80,000 in annual profits. How much must the administrator raise the per day charge for the private insured residents if 25 percentof the residents are covered by non-private pay payors?