1. Change variable cost for flexible budget to suit new volume of visits (calculate a per visit cost with the original volumes, then increase to the new volume)

2. Fill in table

3. Fill in P&L Statement

	Simple Budget	Flexible Budget	Actual	Simple Variance	Flexible Variance
I. Volume (Number of Visits)
Payer A	9,000	11,000	11,000
Payer B	12,000	12,000	12,000
II. Reimbursement (Per Visit)
Payer A	$100	$100	$ 95
Payer B	$ 90	$90	$ 95
III. Costs
Variable Costs (Total):
Supplies	$ 315,000		$ 350,000
Fixed Costs (Total):
Labor	$1,035,000	$1,035,000	$1,000,000
Overhead	$ 500,000	$500,000	$ 500,000
Forecasted P&L Statement
Revenues:
Payer A
Payer B
Total Revenues
Variable Costs	$315,000		$350,000
Fixed Costs	$1,535,000	$1,535,000	$1,500,000
Total Costs	$1,850,000		$1,850,000
Profit