In addition to the static budget , the clinic also created a flexible and actual budget...

In addition to the static budget , the clinic also created a flexible and actual budget to reflect the realized volume & actual volume, respectively. Fill in the blanks on the table below & answer the questions using the numbers in the table

a)calculate & interpret the profit variance? (b) calculate & interpret the revenue variance (c) calculate & interpret the cost variance (d) calculate & interpret the volume & price variances on the revenue side (e)calculate & interpret the volume & price variances on the cost side?

	Static budget	Actual budget	Flexible budget
Assumptions FFS visits Capitated visits Total	50,000 90,000 140,000	60,000 100,000 160,000	60,000 100,000 160,000
Revenues FFS Capitated Total	1,500,000 1,080,000 2,580,000	1,680,000 1,080,000 2,760,000	1,400,000 1,080,000 2.480,000
Costs FFS Capitated Total	642,857.145 1,157,142.85 1,800,000	833,400 1,389,000 2,222,400	750,000 1,080,000 1830,000
Contribution Margin	?	?	?
Fixed costs	$500,000	$500,000	$500,000
Profit	?	?	?

Expert Solution

ekkarill92 answered 2 years ago

In addition to the static budget, the clinic also created a flexible and actual budget to...

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A different between the static-budget and flexible -budget amounts is called the sales -volume variance

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