Question
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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