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1.Calculate the Volume Variance and the Price Variance with the following assumptions for the Medical Imaging department of ABC Hospital: Budgeted Imaging Procedures:15,000 Budgeted Imaging

1.Calculate the Volume Variance and the Price Variance with the following assumptions for the Medical Imaging department of ABC Hospital:

Budgeted Imaging Procedures:15,000

Budgeted Imaging Costs:$300,000

Period 1:

Actual Imaging Procedures:15,750

Actual Imaging Costs:$307,125

Period 2:

Actual Imaging Procedures:14,350

Actual Imaging Costs:$304,950

2.For each year, estimate the % tile (percentile) ABC Hospital's Operating Margin approximates and explain the trend over the past 5 years.

Total Operating Revenue

Net Operating Income

Year 1$222.6 million$5.5 million

Year 2$234.7 million$8.5 million

Year 3$231.5 million$6.9 million

Year 4$235.0 million$11.8 million

Year 5$240.8 million$12.0million

Net Operating Income Benchmarks:

25th% tile2.0%

50th %tile3.5%

75th %tile4.5%

90th %tile6.0%

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