6.4 Again refer to Carroll Clinic's 2016 operating budget, contained in exhibit 6.2. Instead of the actual results reported in exhibit 6.3 or listed in problem 6.3, assume Chapter 6: Planning and Budgeting of 183 these results: 8.500 11,000 19.500 $ Carroll Clinic: New 2016 Results 1. Volume (Number of Visits) Payer A Payer B Total II. Reimbursement (per Visit) Payer A Payer B III. Costs Variable Costs: Supplies Fixed Costs: Labor Overhead Total 90 $ 80 $ 320,000 $1,050,000 550,000 $1,600,000 IV. P&L Statement Revenues: Payer A Payer B Total revenues Variable costs Fixed costs Total Profit $ 765,000 880,000 $1,645,000 $ 320,000 1,600,000 $1,920,000 ($ 275,000 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. 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 vari- ance analysis here and the Carroll Clinic illustration presented in the chapter and in problem 6.3