Here are the 2007 revenues for the Wendover Group Practice Association for four different budgets, in thousands of dollars:

a. What does the budget data tell you about the nature of Wendover’s patients: Are they capitated or fee-for-service? (Hint: See the note to Figure 8.2.)

b. Calculate and interpret the following variances:
• Revenue variance • Volume variance • Price variance • Enrollment variance • Utilization variance

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Flexible Flexible Static Budget (Enrollment/Utilization) (Enrollment) Actual Budget Budget Results $425 $200 $180 $300