6.4Again 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 these results:

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 variance analysis here and the Carroll Clinic illustration presented in the chapter and in problem 6.3.

EXHIBIT 6.2 Carroll Clinic: 2016 Operating Budget