100,000 visits 40% 60% $28 per visit $18 per visit Total FFS Visit Volume Payer Mix: Blue Cross Highmark Reimbursement Rates: Blue Cross Highmark Variable Costs Resource Inputs: Labor Supplies Resource Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment) 50,000 total hours 150,000 total units $28.00 per hour $1.50 per unit $500,000 Construct Chelsea Clinic's flexible budget and actual operating results for 2015 What are the profit variance, revenue variance, and cost variance? Focus on the revenue side. What is the volume variance? The price vari- ance? Now consider the cost side. What are the volume and management variances? Break down the management variance into labor, supplies, and fixed costs variances. Interpret your results