182 Gapenski's Fundam& 6.3 Refer to Carroll Clinic's 2016 operating budget, contained in exhibit, the actual results reported in exhibit 6.3, assume the following res.2 Volume (Number of Visits) Payer A Payer B 11,000 12,000 23,000 Total I. Reimbursement (per Visit Payer A Payer B $ 95 $95 IIl. Costs Variable costs: $ 350,000 Supplies Fixed costs: $1,000,0oo 500,000 $1,500,000 Labor Overhead Total IV P&L Statement Revenues: Payer A Payer B $1,045,00o 1,140,000 $2,185,000 $350,000 1,500,000 $1,850,00o $ 335.0oo Total revenues Variable costs Fixed costs Total Profit a. What are the profit, revenue, and cost variances based on the simple (exhibit 6.2) budget? b. Construct Carroll's flexible budget for 2016. c. What are the profit, revenue, and cost variances based on the flexible budget! d. Interpret your results. In particular, focus on the differences between the van ance analysis here and the Carroll Clinic illustration presented in the chapter